Understanding Real GDP and Nominal GDP: Analyzing Singapore's Economic Performance

a)

i) Real GDP refers to the value of all final goods and services produced within a country's borders, adjusted for inflation. It takes into account the changes in price levels over time, providing a measure of economic output that is adjusted for inflation.

Nominal GDP, on the other hand, refers to the value of all final goods and services produced within a country's borders, without adjusting for inflation. It does not take into account changes in price levels over time, providing a measure of economic output that is not adjusted for inflation.

ii) Real GDP is better for analyzing the economic performance of Singapore in the last ten years. This is because real GDP takes into account inflation, allowing for a more accurate comparison of economic output over time. Nominal GDP, on the other hand, can be affected by changes in price levels, making it difficult to compare economic performance accurately over time.

b)

i) Nominal GDP for 2013 = (Quantity of Tables in 2013 * Price of Tables in 2013) + (Quantity of Shoe-racks in 2013 * Price of Shoe-racks in 2013) = (120 million * $150) + (160 million * $40) = $18,000 million + $6,400 million = $24,400 million

Nominal GDP for 2014 = (Quantity of Tables in 2014 * Price of Tables in 2014) + (Quantity of Shoe-racks in 2014 * Price of Shoe-racks in 2014) = (200 million * $120) + (300 million * $50) = $24,000 million + $15,000 million = $39,000 million

ii) Real GDP for 2013 = (Quantity of Tables in 2013 * Price of Tables in 2013) + (Quantity of Shoe-racks in 2013 * Price of Shoe-racks in 2013) = (120 million * $150) + (160 million * $40) = $18,000 million + $6,400 million = $24,400 million

Real GDP for 2014 = (Quantity of Tables in 2014 * Price of Tables in 2013) + (Quantity of Shoe-racks in 2014 * Price of Shoe-racks in 2013) = (200 million * $150) + (300 million * $40) = $30,000 million + $12,000 million = $42,000 million

iii) Real GDP growth rate between 2013 and 2014 = ((Real GDP for 2014 - Real GDP for 2013) / Real GDP for 2013) * 100 = (($42,000 million - $24,400 million) / $24,400 million) * 100 = ($17,600 million / $24,400 million) * 100 = 72.13%

iv) Nominal GDP per Capita in 2021 = Nominal GDP in 2021 / Population in 2021 = Nominal GDP in 2021 / 750,000

Note: The table does not provide information for the years 2021 and the population of Isles Province. Additional information is needed to calculate the nominal GDP per Capita in 2021.