SPANISH ECONOMY  

Seminar 1 

SECOND YEAR  (27316) 

 
Degree in Business Administration and Management 
 
 
Group 100  Eva Pardos  

DEPARTAMENTO DE ESTRUCTURA E HISTORIA ECONÓMICA Y ECONOMÍA 
PÚBLICA 

ACADEMIC YEAR  2019‐2020 

FACULTAD DE ECONOMÍA Y EMPRESA 

UNIVERSIDAD DE ZARAGOZA 

 
 
 

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 SPANISH ECONOMY
2019-20
Degree in Business Administration and Management

LESSON 1- SEMINAR 1

ECONOMIC INDICATORS AND SOURCES OF INFORMATION

EXERCISE 1: Growth rates

From the information provided in Table 1:

a) Calculate the simple rate of change for the Gross Domestic Product (GDP) and per
capita Gross Domestic Product (GDP pc) between 1998 and 2009.

b) Obtain the cumulative average rate of change for GDP and per capita GDP between
1998 and 2009.

TABLE 1
GDP at constant prices in millions of 2000 euros
GDP p/c at constant prices in 2000 euros
YEAR GDP GDP p/c
1998 572,782 14,419
1999 599,966 15,026
2000 630,263 15,653
2001 653,255 16,042
2002 670,920 16,240
2003 691,695 16,467
2004 714,291 16,731
2005 740,108 17,054
2006 769,850 17,470
2007 797,367 17,769
2008 804,223 17,639
2009 774,285 16,858
Source: OECD. National Accounts. Main Aggregates

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 EXERCISE 2: Index numbers

Using the same information found in Table 1:

a) Show the data for GDP and GDP p/c in form of index numbers, taking 1998 as the
base year.
b) Describe briefly the different evolution of each series.

EXERCISE 3: deflators

With data provided in Table 2 for the Spanish GDP in current prices and million euros and the
GDP deflator:

a) Assess GDP at constant 2004 prices for every year in the period.
b) Calculate the simple growth rate of GDP in real terms for the 2004-2009 period.
c) Express GDP at current and constant prices as index numbers taking 2004 as base year.

TABLE 2

YEAR GDP current GDP deflator

prices (mill. €)
2004 841,042 100.0
2005 908,792 104.3
2006 984,284 108.6
2007 1,053,537 112.2
2008 1,088,124 114.9
2009 1,053,914 115.6
SOURCE: OECD, National Accounts. Main Aggregates

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 EXERCISE 4: CPI

With the data shown in Table 3, on the evolution of average labour costs* at current prices and
the Consumer Price Index in Spain in the years 2000 to 2007:

a) Estimate the real wage for the average Spanish worker in these years.

b) Compare the evolution of nominal and real wages using index numbers.

c) Has the purchasing power of the average worker improved or worsened?

TABLE 3

Nominal wage
CPI
(euros)
2000 1326.41 100.0
2001 1372.38 103.6
2002 1425.37 106.8
2003 1480.17 110.0
2004 1520.94 113.3
2005 1560.20 117.2
2006 1613.67 120.3
2007 1676.70 121.1
Source: INE 

*
Labour costs correspond to gross average wage per worker including annual bonuses and overtime payments.
 
 

EXERCISE 5: National Accounts

Search on the INE website for data on the Spanish National Disposable Income for the
period 2008-2018 and answer the following questions:

1. How much have the compensation of employees and the operating surplus/mixed
income increased from 2008 to 2018 in terms of
a. total growth?
b. average annual growth?
c. cumulative average annual growth?
2. Calculate index numbers for GDP, GNI and NNDI pc in the years 2008, 2013 and
2018. Compare the evolution of the three variables.
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 EXERCISE 6: Growth rates

From the information given in Table 4:

a) Estimate the simple rate of growth of the Gross Domestic Product (GDP) and of the
Gross Domestic Product per capita (GDP p/c) between 2008 and 2018.
b) Obtain the cumulative average annual growth of GDP and GDP per capita between
2008 and 2018.
c) Express the series of GDP and GDP pc as index numbers taking 2008 as the base
year.
d) Comment briefly on the differences found in the evolution of both series.

TABLE 4:

GDP at constant prices in million 2010 euros

GDP pc at constant prices in 2010 euros

YEAR GDP GDP p/c

2008 1,120,820 24,375

2009 1,080,764 23,309
2010 1,080,935 23,215
2011 1,070,139 22,897
2012 1,038,808 22,213
2013 1,021,089 21,915
2014 1,035,180 22,284
2015 1,072,909 23,118
2016 1,106,948 23,831
2017 1,139,926 24,497
2018 1,169,356 25,024
Source: OECD National Accounts of OECD Countries.

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 EXERCISE 7: GDP deflators

From the information given in Table 5:

a) Estimate the GDP deflator series from 2008 to 2018.

TABLE 5

YEAR GDP at constant Nominal GDP

2010 prices

2008 1,120,820 1,116,225

2009 1,080,764 1,079,052
2010 1,080,935 1,080,935
2011 1,070,139 1,070,449
2012 1,038,808 1,039,815
2013 1,021,089 1,025,693
2014 1,035,180 1,037,820
2015 1,072,909 1,081,165
2016 1,106,948 1,118,743
2017 1,139,926 1,166,319
2018 1,169,356 1,208,248

Source: OECD National Accounts of OECD Countries.

EXERCISE 8: deflators

In a country, the average wage per hour for industrial workers has grown from 8 euros to 9.5
euros in five years and expressed in current terms. The index of consumer prices has changed
from 100 to 135.
c) Which is the change of the average wage in nominal terms?
d) And in real terms?
e) Estimate the cumulative average annual growth for the real wage.

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EXERCISE 9: CPI

Consider the following data on the CPI evolution in Spain (press release from INE, data for
December 2019), and answer the questions below:

1- Which are the three groups with the highest and lowest inflation in the last month? And
for the whole year 2019? Are they the same ones?

2- Can we say that industrial goods are the sector with the highest inflation since 2016?

3- Which are the data on core inflation? How can its performance in 2019 be interpreted in
relation to the general index?

4- As for your virtual firm: Have the prices in your sector (group in CPI) increased or
decreased since 2016? And the cost of your main inputs? Analyse briefly how these trends
are affecting your company.

If you export or import, take the following graph also into account:

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 EXERCISE 10: Purchasing Power Parity

Explain the information provided in the following table, which shows data for Gross National
Income per capita in 2016 expressed both in dollars converted using market exchange rates
(ER) and in purchasing power parity (PPP).

To this end, estimate the indices for the GNI pc of these countries taking USA as the point of
comparison. Show the data in a table and describe the results.

Country GNI pc ER GNI pc PPP

Switzerland 81,240 63,660
United States 56,810 58,700
Sweden 54,590 50,030
Germany 43,850 49,710
Japan 37,930 42,790
 
Source: World Bank 

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