1. Nominal and Real GDPConsider the data in the following table, which represents the total production of the countryByzantium, a country that produces only consumer goods.201820192020Quantity of YQuantity of XPrice of YPrice of X100105103534$5$5$5$105$100$110a). Calculate normal GDP for all three years.b). Calculate real GDP for all three years, using 2018 as the base year.c). What are the growth rates based on normal and real GDP, respectively, between 2019 and 2020?Discuss why they are different.

Year 2018 2019 2020 1 Quantity of Y 100 105 103 2 Quantity of X 5 3…

Answered: 1. Nominal and Real GDP: Consider the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider an economy that produces and consumes final products: bread and automobiles. In the following table are data for two different years. Good Year Quantity Price Quantity 2010 Price 2010 $60,000 $20 2000 2000 $50,000 $10 Automobiles 100 120 Bread 500,000 400,000 a. Compute the nominal GDP for each year. b. Compare the numbers you get for each year. If we use GDP as a measure of production capacity of an economy in a certain year, can we infer the economy is more productive in one year than the other? What is your concern when you compare the numbers directly?
Consider a simple economy that produces two goods: stickers and donuts. The following table shows the prices and quantities of the goods over a three-year period. Year 2020 2021 2022 Year 2020 2021 2022 Price (Dollars per sticker) 2 3 2 Stickers From 2021 to 2022, nominal GDP Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP (Dollars) (Base year 2020, dollars) GDP Deflator The inflation rate in 2022 was Quantity (Number of stickers) 255 165 130 and real GDP Donuts Price (Dollars per donut) 2 3 3 Why is real GDP a more accurate measure of an economy's production than nominal GDP? Quantity (Number of donuts) 195 190 195 Real GDP is not influenced by price changes, but nominal GDP is. Real GDP includes the value of exports, but nominal GDP does not. Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods and services an economy consumes.
Refer to Table 6.2. Assume that this economy produces only two goods Good X and Good Y. Calculate the value for this economy's nominal GDP in year 2 ______.
Suppose in year 1 that a country’s economy produces 5 memes at $1 ameme and 7 tacos at $0.50 a taco. In year 2, that country produces 10 memesat $2 a meme and 10 tacos at $0.75 a taco.A) Calculate nominal GDP for both years.B) Calculate real GDP using prices from year 1 as the base year.
An economy produces only food and fun. The table shows the quantities produced and prices in 2018 and 2019. If the base year is 2018, use the chained-dollar method to calculate real GDP in 2018 and 2019. Quest In terms of what dollars is each of these two real GDPS measured? In 2018 Item Quantity Price Real GDP in 2018 using the chained-dollar method is Food 90 $2 $4 Fun 71 $5 In 2019 Item Quantity Price Food 79 $3 Fun 68 $7 Enter your answer in the answer box and then click Check Answer. Check Answ Clear All parts remaining MacBook Air DD F11 F10 F9 F8 F7 80 F6 F5 F4 F3 F2 esc F1 & 2$ 7 8. 9 4 1 2 Y # 3
Suppose the following table records the total output and prices of rice and gasoline for an entire economy. This economy produces rice and gasoline only. Further suppose the base year is 2015. Rice Gasoline Year Price Quantity Price Quantity 2015 $8.00 500 $2.00 2000 2016 $9.00 600 $2.30 2000 2017 $10.00 600 $3.00 1800 (1) Compute nominal GDP for 2015, 2016, and 2017. (2) Compute real GDP for 2015, 2016, and 2017. (3) Compute GDP deflator for 2015, 2016, and 2017. (4) Calculate inflation rate from 2016 to 2017 using GDP deflator you calculated above. Write your calculation below:
The country of Huskies produces two goods: footballs and basketballs. Below is a table showing prices and quantities of output for three years: Quantity of Footballs Quantity of Basketballs Price of Price of Year Footballs Basketballs Year 2016 $10 120 $12 200 Year 2017 12 200 15 300 Year 2018 14 180 18 275 a) Calculate nominal GDP for three years b) Calculate real GDP using 2016 as a base year c) Calculate GDP deflator for these three years
Consider a simple economy that produces two goods: plastic cups and donuts. The following table shows the prices and quantities of the goods over a three-year period. Plastic cups Donuts Price Quantity Price Quantity Year (Dollars per plastic cup) (Number of plastic cups) (Dollars per donut) (Number of donuts) 2018 2 215 3 155 2019 4. 135 3 210 2020 2 150 3 190 Use the information from the preceding table to fill in the following table. Nominal GDP (Dollars) Real GDP (Base year 2018, dollars) GDP Deflator Year 2018 2019 2020 From 2019 to 2020, nominal GDP and real GDP The inflation rate in 2020 was
The table below is extracted from Happy land Republic, Bureau of Statistics recordsfor 2018-2019. Use the information in this table to answer the questions that follow.i. Calculate Happy Land Republic’s nominal GDP and real GDP in 2016ii. Why does real GDP always defer from nominal GDP?Item Base year (2015) 2016Production Price Production PriceUsed car sales 5,000 2000.00 6,000 2,500Factory components sales 8,000 500.00 10,000 1200.00Cloth sales 8,000 20.00 14,000 35.00Beef sales 1,500 10.00 1,800 12.00Milk litres sales 5,000 1.30 6,000 2.50Computers sales 2000 500.00 2500 800.00Printers sales 500 300.00 400 355.00Raw materials for tractorassembling plant sales 4500 250.00 4450 300.00
The table shows the quantities produced and prices in 2015 and 2016 for an island. economy which produces only bananas and coconuts. The base year is 2016. Calculate real GDP in 2015 and 2016 using the chained-dollar method. In terms of what dollars is each of these two real GDPS measured? Real GDP in 2016 using the chained-dollar method is $ Real GDP in 2015 using the chained-dollar method is $ >>> Answer with a whole number Real GDP in 2015 and real GDP in 2016 are measured in ▼ dollars In 2015 Item Bananas Coconuts In 2016 Item Bananas Coconuts Quantity 99 bunches 53 bags Quantity 114 bunches. 66 bags. Price $10 a bunch $9 a bag Price $11 a bunch $10 a bag
GDP 1. Calculate the values for the blanks in the shaded areas of the table below: Expenditure Components of GDP by Country, 2020 (83Son of current US dollars) Australia Canada Denmark Finland Japan India 1617 137.9 873 65.9 C E FOOD 80.0 65.3 16 0.5 L M N 195.4 97.G 1725 96.7 Household consumption Government expenditure Investments Gross fixed Investments Changes in inventories Net Exports Exports Imports A: ÄÜÄ÷ B: C: D: E: F: G: H: I: J: 746.5 K: L: 297.2 A 316.9 4.3 3152 254.7 943.7 371.8 B 377.7 (147) K 476.0 509.8 M: N: 0: P: 1,591.7 Q: R: 292.1 722.0 97.0 4973 $11.3 કીડી || T: 2.700.7 Y: 1,066.4 1,279.5 106 785.4 786.2 New Zealand UK 122.0 43.7 G 47.3 (p.s) P 46A GDP S U W Y Source: GOP by Type of Expenditure at current prices-US dollars, Retrieved 7/27/2022. National Accounts Estimates of Main Aggregates United Nations feste Division 472 Z: ZZ: 1,683.7 2. Based on the information in the table and your calculations for Question #1: Do any countries have positive net exports?…
1. Consider an economy that produces and consumes bread and cars. The data for two differentyears are as follows:Year 2000 Year 2010Goods Quantity Price Quantity PriceCars 100 $ 50,000 120 $ 60,000Bread 500,000 $ 10 400,000 $ 20 a) Use the year 2000 as the base year, compute the Nominal GDP for each year (both 2000 and2010). b) Use the year 2000 as the base year, compute the Real GDP for each year (both 2000 and2010) c) Compute the implicit price deflator in year 2010 and use it to explain how the price level haschanged from year 2000 to 2010. (Note: implicit price deflator = GDP Deflator). 2. Consider a Cobb-Douglas production function with three inputs. K is capital (the number ofmachines), L is labor (the number of workers), and H is human capital (the number of collegedegrees among the workers) . The production function is

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