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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![1. A simple economy produces three commodities: beer, cheese, and popcorn. The
following data shows total production for this economy in 1999 and 2000:
Beer
Cheese
Popcorn
1999
2000
1999 Quantity
200
300
100
1999
2000
Using 1999 as the base year, complete the following table for the economy:
Nominal
GDP
(a)
(b)
Nominal
GDP
Real
GDP
10,000
(1)
(c)
(d)
1999 Price
$ 6.00
7.00
7.00
Real
GDP
(2)
(3)
GDP
Price
Index
(e)
(f)
2000 Quantity
200
300
100
Inflation Growth rate of
rate
nominal GDP
2. Complete the following table for a simple economy, assuming that 1999 is the base
year:
GDP
Price
(g)
Index
(4)
(5)
Inflation
rate
2000 Price
$7.00
9.00
9.00
---
(h)
5%
Growth rate of
real GDP
Growth rate of
nominal GDP
(6)
(i)
Growth rate of
real GDP
5%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe70c8743-1c47-4a3c-a696-b5ed8cd8e2f3%2Fd2fcf89f-d59d-44a6-8726-3cf7314d53e6%2Fx120lob_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. A simple economy produces three commodities: beer, cheese, and popcorn. The
following data shows total production for this economy in 1999 and 2000:
Beer
Cheese
Popcorn
1999
2000
1999 Quantity
200
300
100
1999
2000
Using 1999 as the base year, complete the following table for the economy:
Nominal
GDP
(a)
(b)
Nominal
GDP
Real
GDP
10,000
(1)
(c)
(d)
1999 Price
$ 6.00
7.00
7.00
Real
GDP
(2)
(3)
GDP
Price
Index
(e)
(f)
2000 Quantity
200
300
100
Inflation Growth rate of
rate
nominal GDP
2. Complete the following table for a simple economy, assuming that 1999 is the base
year:
GDP
Price
(g)
Index
(4)
(5)
Inflation
rate
2000 Price
$7.00
9.00
9.00
---
(h)
5%
Growth rate of
real GDP
Growth rate of
nominal GDP
(6)
(i)
Growth rate of
real GDP
5%
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