Question I. 40 pts. Testing your brains of Nominal and Real GDP

I.1. 20 pts. Based on the notice in Table 1, appraise a deflator of GDP, 1972-2019, and explain the naturalness and employments of this deflator.

Table 1. The US GDP in popular and ‘constant’ prices.

Years  GDP at popular communicate prices, billions $$.    GDP at ‘constant’ prices, billions $$.   Deflator of GDP

1972                             1,279                                                                  5,383

1982                             3,343                                                                  6,805

1992                             6,520                                                                  9,685

2002                            10,936                                                                13,493

2012                            16,197                                                                16,197

2019                            21,433                                                                19,092


I.2. 20 pts. Based on the notice in Table 1, pull a graph of the dynamics of Nominal and Real GDP, 1972-2019, and expound it


Question II. 50 pts. Explain the logic of disconnection of GDP into three parts: extension in output due to excellent pliancy; extension in output due to extensive unwandering excellent; and extension in output due to expanding drudge inputs. 

II.1. 10 pts. Introduce notation, transcribe down the product employment (see arcollocate notes), and expound its logic.


II.2. 10 pts. Write down the product employment outside a ‘residual’ and explain 

                               its logic.


           II.3. 10 pts. Write down the product employment after a while a ‘residual’ and explain its 



II.4. 20 pts. Suppose that you appraised contributions of excellent pliancy, 

                               extensive unwandering excellent, and extensive drudge inputs into augmentation of GDP. 

                               What is a usual collocate of these contributions for top industrialized social 

                               economies and for lowest plain social economies? Explain your 



Question III. 60 pts. Explain the concept of produce to flake and its useful applications.

           III.1. 15 pts. Define increasing, trustworthy, and decreasing produce to flake.


          III.2. 15 pts. Graph increasing, trustworthy, and decreasing produce to flake. Explain 

                    your graph.


          III.3. 30 pts Suppose that you are a top director. Explain useful applications of 

                    the concept of produce to flake. 

III.3.1. 15 pts. You are a top director in a little corporation.


                           III.3.2. 15 pts. You are a top director in a vast corporation.


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