1. A simple economy produces three commodities: beer, cheese, and popcorn. Thefollowing data shows total production for this economy in 1999 and 2000:BeerCheesePopcorn199920001999 Quantity20030010019992000Using 1999 as the base year, complete the following table for the economy:NominalGDP(a)(b)NominalGDPRealGDP10,000(1)(c)(d)1999 Price$ 6.007.007.00RealGDP(2)(3)GDPPriceIndex(e)(f)2000 Quantity200300100Inflation Growth rate ofratenominal GDP2. Complete the following table for a simple economy, assuming that 1999 is the baseyear:GDPPrice(g)Index(4)(5)Inflationrate2000 Price$7.009.009.00---(h)5%Growth rate ofreal GDPGrowth rate ofnominal GDP(6)(i)Growth rate ofreal GDP5%

Nominal GDP is what is measured when inflation is not taken into account. A country's real GDP is…

1. A simple economy produces three commodities: beer, cheese, and popcorn. The following data shows total production for this economy in 1999 and 2000: 1999 Quantity 200 300 100 Nominal GDP 1999 Price $ 6.00 Real GDP Beer Cheese Popcorn Using 1999 as the base year, complete the following table for the economy: 7.00 7.00 2000 Quantity 200 300 100 GDP Price Index 2000 Price $ 7.00 Inflation Growth rate of rate nominal GDP 9.00 9.00 Growth rate of real GDP

1. A simple economy produces three commodities: beer, cheese, and popcorn. The following data shows total production for this economy in 1999 and 2000: 1999 Quantity 200 300 100 Nominal GDP 1999 Price $ 6.00 Real GDP Beer Cheese Popcorn Using 1999 as the base year, complete the following table for the economy: 7.00 7.00 2000 Quantity 200 300 100 GDP Price Index 2000 Price $ 7.00 Inflation Growth rate of rate nominal GDP 9.00 9.00 Growth rate of real GDP

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Measuring A Nation's Income

Section: Chapter Questions

Problem 7PA

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