Chapter 2

Data Sources and Interpretations

Answers of Numerical Problems
Numerical Problem 2.2 Table: Indexed
Year India Indexed

DP data of India and !S

US Indexed Year India Indexed US Indexed

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

100.0 0 100.8 6 98.64 111.9 6 127.1 1 130.9 9 146.6 1 147.7 6 157.7 7 165.8 5

100.0 0 105.7 0 111.0 3 117.9 5 123.3 8 130.3 7 138.5 0 145.8 8 154.5 8 163.7 3

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

169.8 4 177.7 4 205.8 2 240.3 6 281.6 2 314.1 1 395.8 3 434.3 6 425.7 5 443.0 9

168.9 2 174.6 1 182.8 0 194.9 0 207.1 7 219.7 9 230.2 8 237.9 1 233.5 4 234.3 4

The level values of the GDP points out that the GDP of US is much higher than that of India. On the other hand, the indexed GDP data provide much etter frame!or" for comparison. #et!een 1$$1 and 1$$% India&s GDP Gro!th rate !as lo!er than that of US. 'o!ever, since then, specificall( since )**+, the India&s GDP is gro!ing at a higher rate than that of US,. Numerical Problem 2.2 -stimated values of real sales revenue on the asis of original price index and re.indexed price index is sho!n in the follo!ing ta le. Table: "stimated #eal $alues usin% Price Indexed and #e&indexed Price Index /ear Sales Price 0eal Sales Price Index 0e. 0eal Sales 0evenue Index 0evenue indexed to )**1 0evenue )**1 )** 1)* 111.12 1**.* )**.* )**2 ))* 1)% 121.** 1*3.) )11.) )**4 )%* 13* 124.%2 111.2 )13.+ )**$ )1* 13% 12$.+1 1)*.4 )1%.) )**1* )$* 11* 141.)% 1++.+ )12.% a. The real sales revenue of the firm has increased ( nearl( 4.2% per cent 56141.)% 7 111.1289111.2:. . Though from real sales figures one can easil( estimate the gro!th in the revenue, not much can e said a out the actual num ers from these figures. This pro lem can e traced to the fact that the ase (ear 6the (ear for !hich the price index is e;ual to 1**8 is outside the range of the (ears specified in the illustration. 0e indexing the price index is one solution. This implies that the price index, for one of the (ears in the range of (ears specified in the illustration can e set to 1**, and the price index of all other (ears can e set in comparison to this (ear. The real figures in the last column of the a ove ta le are estimated ( setting the price index for (ear )**1 as 1** and ad<usting price index for all the other (ears accordingl(.

Using the re.indexed price index also the gro!th in the real sales revenue turns out to e 4.2% percent. Numerical Problem 2.' -stimated period to period gro!th rate, annuali=ed gro!th rate, (ear on (ear gro!th rate in the GDP of India for the given period are presented in the ta le elo!. Table : rowth of #ate of DP
*uarter *0 *2 *' *1 Annual A2era%e %rowth rate Period to Period rowth #ate 2++,&+- 2++-& 2++.& +. +/ . -0.9 15.6 3.2 -1.1 15.8 2.7 -1.1 13.7 2.6 Annuali(ed rowth #ate 2++,& 2++-& 2++.& ++. +/ . . -3.7 78.3 13.6 -4.2 79.9 11.1 -4.4 67.2 10.8 )ear on )ear rowth #ate 2++,& 2++-& 2++.& ++. +/ 9.2 9.0 9.3 8.6 9.0 7.8 7.7 5.8 5.8 6.8