1 Calculate the missing information in the table 3.1. Table 3.1 Year Real GDP Nominal GDP GDP Deflator 2013 2700 1890 2014 3600 100 2015 4680 130 Consider the following data on Prices and Quantities of T-Shirts and Pajamas, Note: that the GDP Deflator for 2015 is 100 (i.e. the base year) In response to lobbying by the skateboard manufacturers, the government places a price floor of $700 on skate boards. Use the following supply and demand schedules for skateboards in Table 5.1 to answer the questions below. Price of Year T-Shirts Quantity of T-Shirts Price of Pajamas Quantity of Pajamas 2015 $10 120 $12 200 2016 12 300 15 200 2017 14 275 18 180 a. Calculate the Nominal GDP in 2015. b. Calculate the Nominal GDP in 2016. Table 5.1 Price ($) Quantity Demanded Quantity Supplied 300 60 30 400 55 40 500 50 50 600 45 60 700 40 70 800 35 80 c. Calculate the Real GDP in 2016. d. Calculate the Real GDP in 2017. e. Calculate the growth rate of real GDP between 2016 and 2017 f. Calculate the consumer price index for 2016. Use the information provided in Table 5.1, to plot the supply and demand curve for skateboards. b. Using the answer from question 5a, show the price floor in the diagram c. What would be the impact if the government reconsidered and introduced a price ceiling of $550?
1 Calculate the missing information in the table 3.1. Table 3.1 Year Real GDP Nominal GDP GDP Deflator 2013 2700 1890 2014 3600 100 2015 4680 130 Consider the following data on Prices and Quantities of T-Shirts and Pajamas, Note: that the GDP Deflator for 2015 is 100 (i.e. the base year) In response to lobbying by the skateboard manufacturers, the government places a price floor of $700 on skate boards. Use the following supply and demand schedules for skateboards in Table 5.1 to answer the questions below. Price of Year T-Shirts Quantity of T-Shirts Price of Pajamas Quantity of Pajamas 2015 $10 120 $12 200 2016 12 300 15 200 2017 14 275 18 180 a. Calculate the Nominal GDP in 2015. b. Calculate the Nominal GDP in 2016. Table 5.1 Price ($) Quantity Demanded Quantity Supplied 300 60 30 400 55 40 500 50 50 600 45 60 700 40 70 800 35 80 c. Calculate the Real GDP in 2016. d. Calculate the Real GDP in 2017. e. Calculate the growth rate of real GDP between 2016 and 2017 f. Calculate the consumer price index for 2016. Use the information provided in Table 5.1, to plot the supply and demand curve for skateboards. b. Using the answer from question 5a, show the price floor in the diagram c. What would be the impact if the government reconsidered and introduced a price ceiling of $550?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter19: The Macroeconomic Perspective
Section: Chapter Questions
Problem 10SCQ: Explain briefly whether each of the following would cause GDP to overstate or understate the degree...
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Question
Transcribed Image Text:1
Calculate the missing information in the table 3.1.
Table 3.1
Year
Real GDP
Nominal
GDP
GDP
Deflator
2013
2700
1890
2014
3600
100
2015
4680
130
Consider the following data on Prices and Quantities of T-Shirts and Pajamas,
Note: that the GDP Deflator for 2015 is 100 (i.e. the base year)
In response to lobbying by the skateboard manufacturers, the government places a price floor
of $700 on skate boards. Use the following supply and demand schedules for skateboards in
Table 5.1 to answer the questions below.
Price of
Year T-Shirts
Quantity of
T-Shirts
Price of
Pajamas
Quantity of
Pajamas
2015
$10
120
$12
200
2016
12
300
15
200
2017
14
275
18
180
a. Calculate the Nominal GDP in 2015.
b. Calculate the Nominal GDP in 2016.
Table 5.1
Price ($)
Quantity Demanded
Quantity Supplied
300
60
30
400
55
40
500
50
50
600
45
60
700
40
70
800
35
80
c. Calculate the Real GDP in 2016.
d. Calculate the Real GDP in 2017.
e. Calculate the growth rate of real GDP between 2016 and 2017
f. Calculate the consumer price index for 2016.
Use the information provided in Table 5.1, to plot the supply and demand curve for
skateboards.
b. Using the answer from question 5a, show the price floor in the diagram
c. What would be the impact if the government reconsidered and introduced a price
ceiling of $550?
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