1. Suppose people consume 3 different goods. The following table shows the prices and quantitiesof each good consumed in 2019, 2020, and 2021.Year Price ofPizza2019 $82020 $ 102021 $ 13Quantity of Price ofPizzaBurger350500700$10$12$ 14Quantity ofBurger200250400a. Calculate nominal GDP in each of the three years.e. Using the CPI calculate the rate of inflation.Price of coffee Quantity ofCoffee$8$ 10$15b. Calculate Real GDP in each of the three years, using 2019 as the base year.c. Calculate the rate of inflation for 2020 and 2021 using the GDP deflator as your price index.Assume that 2019 is still the base year.d.Using the quantities from 2019 for your market basket, and 2019 as your basethe CPI for 2019, 2020 and 2021.150250400year, calculate

As per Bartelby’s guidelines first three sub-parts should be done.

1. Suppose people consume 3 different goods. The following table shows the prices and quantities of each good consumed in 2019, 2020, and 2021. Year Price of Pizza 2019 $8 2020 $10 2021 $ 13 Quantity of Price of Pizza Burger 350 500 700 $ 10 $12 $ 14 Quantity of Burger 200 250 400 a. Calculate nominal GDP in each of the three years. Price of coffee Quantity of Coffee $8 $ 10 $15 150 250 400 b. Calculate Real GDP in each of the three years, using 2019 as the base year. c. Calculate the rate of inflation for 2020 and 2021 using the GDP deflator as your price index. Assume that 2019 is still the base year.

1. Suppose people consume 3 different goods. The following table shows the prices and quantities of each good consumed in 2019, 2020, and 2021. Year Price of Pizza 2019 $8 2020 $10 2021 $ 13 Quantity of Price of Pizza Burger 350 500 700 $ 10 $12 $ 14 Quantity of Burger 200 250 400 a. Calculate nominal GDP in each of the three years. Price of coffee Quantity of Coffee $8 $ 10 $15 150 250 400 b. Calculate Real GDP in each of the three years, using 2019 as the base year. c. Calculate the rate of inflation for 2020 and 2021 using the GDP deflator as your price index. Assume that 2019 is still the base year.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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These are Macroeconomic questions a. Farmers in Country A grow $150 worth peanuts which are sold to cooking oil manufacturer as input. Peanut oil are sold to households for $320. Farmers in Country B grow vegetables valued at $130 which are sold to their cooking oil business, with the latter’s output amount to $280. Half of these vegetable oil go to households and the rest go the restaurants. The restaurants have receipts of $500. Find the GDP of Country A and B using the value of final good approach and the expenditure approach. Explain the details of your calculation. b. With a change in the taste of customers, restaurants in Country B now decided to import $40 peanut oil from Country A, using only $100 locally produced vegetable oil. Income of Country B restaurants remain unchanged, and Country B households buy the same amount of vegetable oil. Find the GDP of both countries using the value of final good approach and the expenditure approach. Explain the details of your…
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