Summary Exercises of Economics of Tourism

Economics of tourism
Practice No 1 Calculation of GDP
Escola Universitària de Turisme i Direcció Hotelera; UAB


Instructions: Numerical answers should be placed in the table “A”, comment should be done
after table “A”. Upload your answer to the Campus Virtual.
Assume there is an economy that only produces three goods: apples, peaches and oranges. In
the table below, you’ll find data for quantities and market prices of those products during four
consecutive years:



Apples Peaches Oranges

Year
Price Quantities Price Quantities Price Quantities

2015 15 120 8 80 20 200

2016 18 150 9 100 22 250

2017 21 130 10 100 25 220

2018 19 140 10 110 21 240


a) Calculate the Nominal GDP (or “current prices”) for all four years.

b) Taking 2015 as the base year, calculate the real GDP (or “constant prices”) for all four
periods.

c) Calculate the GDP deflator for the corresponding periods and make a comment comparing
the Nominal GDP and Real GDP using the deflator.



Table “A”
DEFLATOR
Real GDP / constant prices base
Year/period Nominal GDP / current prices = Nominal GDP / Real
year 2015
GDP

(15*120) + (8*80) + (20*200) = (15*120) + (8*80) + (20*200)
2015 = = 1
6440 = 6440
(15*150) + (8*100) + (20*250) = (18*150) + (9*100) + (22*250)
2016 = = 1.13
8050 = 9100