Practice Quiz on Growth Arithmetic

1. Here is data on population, nominal GDP, and the price index for a hypothetical country in various years.

   Year	Population	Nominal GDP (Dollar value of shmoos)	Price index of shmoos	Real GDP (real value of shmoos)	Real GDP Per Capita
   1980	120 million	$1.23 trillion	0.94	?	?
   1985	125 million	$1.81 trillion	1.16	?	?
   1990	132 million	$2.22 trillion	1.33	?	?
   1995	139 million	$2.80 trillion	1.45	?	?

2. What was the average annual growth rate in nominal GDP between 1985 and 1995?
3. What was the average annual growth rate in real GDP between 1980 and 1990?
4. What was the average annual growth rate in real GDP per capita between 1990 and 1995?
5. Which period had the fastest average annual inflation rate?
6. From 1980 to 1985, which was growing faster--real GDP or population?
7. If real GDP per capita were higher in 1983 than in 1985, then which grew faster between 1983 and 1985--real GDP or population?
8. From 1990-1995, which was growing faster--nominal GDP or inflation?
9. Suppose that from 1990 to 1993 inflation grew faster than nominal GDP. What would happen to real GDP?