CGTC Calculating the GDP Deflator and The Inflation Rate Problem

1. Colombia Country
   1. Calculating the GDP deflator and the inflation rate

Go to the website of the Federal Reserve Bank of St. Louis (FRED)

https://fred.stlouisfed.org/

Find the values for the most recent quarter and the values for the same quarter one year ago for nominal Gross Domestic Product (GDP) and Real Gross Domestic Product (GDPCI).

•  Locate the data for Gross domestic product (GDP-country name)
•  Click on the “Download Data” link on the left of the page. Change the beginning date to one year prior to the most recent observation. Then click on “Download data” button to download the data and save it to your computer.
•  Locate the data for Real Gross Domestic product (RGDP-country name)
•  Repeat the above steps you did for downloading data.
• a. Use these values to calculate the GDP price deflator for the most recent quarter and the GDP price deflator for the quarter one year ago.

GDP deflator = X 100

• b. Using the two GDP price deflators, calculate the inflation rate during this year.

Inflation rate = X 100

1. 2. Calculating net exports

Go to the website of the Federal Reserve Bank of St. Louis (FRED)

https://fred.stlouisfed.org/

• a. Find the values for the most recent two years for Real Exports of Goods and Services (EXPGSCA) and Real Imports of Goods and Services (IMPGSCA).
• b. Compute the value of net exports for each of the two most recent years.

Net exports = Exports – Imports

Comment on the net exports, whether there was a surplus or deficit.