Use tne inrormation trom tne preceaing tabie to nii in tne roliowing tabie.Nominal GDPReal GDPYear(Dollars)(Base year 2016, dollars)GDP Deflator201620172018From 2017 to 2018, nominal GDPand real GDPThe Inflation rate in 2018 wasWhy is real GDP a more accurate measure of an economy's production than nominal GDP?O Real GDP Is not influenced by price changes, but nominal GDP is.O Real GDP does not include the value of intermediate goods and services, but nominal GDP does.Real GDP includes the value of exports, but nominal GDP does not. 1. Real versus nominal GDpConsider a simple economy that produces two goods: cupcakes and muffins. The following table shows the prices and quantities of the goods over athree-year period.CupcakesMuffinsPriceQuantityPriceQuantityYear(Dollars per cupcake) (Number of cupcakes) (Dollars per muffin)(Number of muffins)201612019520171301952018130145

1. Real versus nominal GDP Consider a simple economy that produces two goods: cupcakes and muffins. The following table shows the prices and quantities of the goods over a three-year period. Cupcakes Muffins Price Quantity Price Quantity (Dollars per cupcake) (Number of cupcakes) (Dollars per mutfin) (Number of muffins) Year 2016 120 195 2017 130 195 2018 130 145

1. Real versus nominal GDP Consider a simple economy that produces two goods: cupcakes and muffins. The following table shows the prices and quantities of the goods over a three-year period. Cupcakes Muffins Price Quantity Price Quantity (Dollars per cupcake) (Number of cupcakes) (Dollars per mutfin) (Number of muffins) Year 2016 120 195 2017 130 195 2018 130 145

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5. An economy produces three goods: laptops, Apple phones, and plums. Production units and prices per unit for years 2020 and 2021 are as follows: 2020 2021 Quantity Price($) | Quantity Price($) Laptops Apple Phones Plums 10 2,000 12 3,000 4 1,000 6. 500 1,000 1 1,000 1 a. What is nominal GDP in 2020 and in 2021? b. Using 2020 as the base year, what is real GDP in 2020 and in 2021? c. What is the percentage increase in real GDP from 2020 to 2021? d. Repeat b. using 2021 as the base year. e. Does the growth rate for real GDP depend on which year is chosen as the base year?
I. Based on the data in Table 2 below, calculate Indonesia's 2011-2016 by measuring changes in the GDP Deflator. Table 2.Indonesia's Gross Domestic Product 2011-2016 year Product Domestik Bruto (Miliar Rp.) Nominal IHK (%) Deflator 2010 6,864,133.1 6.96 100.0 2011 7,831,726.0 3.79 107.5 2012 8,615,704.5 4.30 111.5 2013 9,546,134.0 8.38 117.0 2014 10,569,705.3 8.36 123.4 2015 11,531,716.9 3.35 128.4 2016 12,406,809.8 3.02 131.5
43. In determining GDP by the income method, it does not include 1. Net exports 2. Profit 3. The percentage 4. Rent
teractive Book: Measuring a Nation's Income (Ch 10) g. California hires workers to repave Highway 66. h. The federal government sends your grandmother a Social Security i. Your parents buy a bottle of French wine. j. Honda expands its factory in Ohio. 2. Fill in the blanks: Nominal GDP GDP deflator Real GDP (in 2000 dollars) Year (base year (in current dollars) (000 1,200 1970 000's 09 1980 000's 066 000 2010 000 2020 2030 000'0 000'0 3. The government purchases component of GDP does not include spending on tr such as Social Security Thinking about the definition of GDP, explain why trans 59 rch 五。 Prt Scn F8 Home, F5 F4 $ V # 6 6
Can you explain the steps briefly please.
6) The following table describes the economic activities of a hypothetical economy in a given year. Calculate the value-added at each step of the economic activities and its contribution to GDP. Item Seller Buyer Price ($) Value added ($) Kilogram of Lemons Famer Factory 6. Liter of lemon juice Factory Restaurant 10 Liter of lemon juice used as salad dressing Restaurant Consumers 16
5. Real versus nominal GDP Consider a simple economy that produces two goods: cupcakes and erasers. The following table shows the prices and quantities of the goods over a three-year period. Year 2018 2019 2020 Cupcakes Year 2018 2019 2020 Price (Dollars per cupcake) 1 2 4 Quantity (Number of cupcakes) 120 130 130 Price (Dollars per eraser) 1 Erasers 4 4 Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP (Dollars) (Base year 2018, dollars) GDP Deflator and real GDP Quantity (Number of erasers) 195 From 2019 to 2020, nominal GDP The inflation rate in 2020 was Why is real GDP a more accurate measure of an economy's production than nominal GDP? ● 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. 195 145 ● Real GDP is not influenced by price changes, but nominal GDP is. Real GDP includes the value of exports, but nominal GDP does not.
The following data represents the output and price of the goods and services produced in the country of Florin in 2018, which specializes in the production of just three things. 2017 is the base year. Production Data Products 2017 Quantity 2017 Price 2018 Quantity 2018 Price haircuts 8 686 face wash 8 3 3.8 prom dresses 2 4 1 5 Calculate Florin's 2017 GDP deflator.
Using the following data answer all the questions. The base year is Year Price of Guitars (RM) Quantity of Guitars Price of Drum (RM) Quantity of Drum 2000 500 100 1,000 25 2001 520 110 1, 050 30 2002 600 112 1, 075 32 a. Calculate nominal GDP in 2000, 2001 and 2002 b. Calculate real GDP in 2000, 2001 and 2002 expressed in base year c. Conclude your answer regarding to nominal GDP and Real GDP for each
67. GDP is defined as the market value of all final goods and services produced within a country in a given period of time. In spite of this definition, some production is left out of GDP. Explain why some final goods and services are not included.
The economy of Fantasia produces only 2 goods namely Shoes and Computers. The total productionand average prices of shoes and computers are displayed in Table 2 attached. (a)Explain why nominal GDP in 2020 differs from real GDP in 2020 (b) Calculate the changes in prices for both products. How much has price changed from 2019 to2020?
Product A B For the given data, calculate the following: a. Nominal GDP for all the years b. Real GDP for all the years C. GDP Deflator for all the years C Quantity (2017) 45 54 Price (2017) Quantity Price (2018) Quantity (2018) (2019) BD 14 BD 3 58 63 36 BD 20 Note: Use 2017 as the base year in your calculation. 36 BD 16 BD 3-5 BD 25 63 72 45 Price (2019) BD 18 BD 3.75 BD 30