A B C D E F G H I J K L

1 ESTIMATING REAL GDP or GDP AT CONSTANT PRICES

2 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
3 Volume Indicators 100 102 108.3 100.9 113.8 95.2 97.5 101.6 100 104.8
4 Price Indicators 100 108.3 116.9 131 140.1 154.9 162.8 177.8 188 198.6
5
6 Current Price GDP (000) 6028.0 7421.0 8501.0 11276.0 15554.4 16975.4 20032.0 19125.0 19058.5 18158.0
7
Constant Price GDP, Deflation
6028.0 7532.8 8549.6 11045.8 11102.4 10958.9 12304.7 10756.5 10137.5 9143.0
8 a [using Price Indicator]
9 Formulae used for Deflation (G6/G4)*100 (H6/H4)*100 (I6/I4)*100 (J6/J4)*100 (K6/K4)*100 (L6/L4)*100
10

Constant Price GDP, Extrapolation 6028.0 7532.8 8549.6 11045.8 12458.0 10421.8 10673.6 11122.4 10947.3 11472.7
11 b [ using Volume Indicator]
12 Formulae used for Extrapolation F11*(G3/F3) G11*(H3/G3) H11*(I3/H3) I11*(J3/I3) J11*(K3/J3) K11*(L3.K3)
Implicit Price (GDP) Deflator 100.00 98.52 99.43 102.08 124.85 162.88 187.68 171.95 174.09 158.27
13 c
14 c = Current/Constant -(Extrapolation estimates). Using Deflation real GDP will return the price index. Try it.
15 Original data were adjusted so current GDP = constant GDP since in the base year 2005=100 , GDP at Current & Constant prices are same.

16 1. Use the data provided to complete estimates of Constant Price GDP for the years 2009-2014
17 6a. Using the method of Deflation
18 6b. Using the method of Extrapolation
19 6c. Explain the concept of the Implicit Price Deflator and compute Implicit Price Deflators for the period 2005 - 2014
20 6d. Calculate the Growth Rate of GDP at Constant Prices over the period 2005 - 2014.
21 6d. Growth Rate [[9th root of (11472.7/6028.0)] -1]*100 ANS = 7.41%