Answered: 2. According to the following table,…

2. According to the following table, what is the GDP deflator in 2005? 2004 Nominal GDP Real GDP $10,000 $8,000 2005 $12,000 $10,000

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 8QR

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Similar questions

Why do you suppose that U.S. GDP is so much higher today than 50 or 100 years ago?
Last year, a small nation with abundant forests cut down 200 worth of trees. It then turned 100 worth of trees into 150 worth of lumber. It used 100 worth of that lumber to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nations GDP? In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves?
Which of the following are included in GDP, and which are not? The cost of hospital stays The rise in life expectancy over time Child care provided by a licensed day care center Child care provided by a grandmother A used car sale A new car sale The greater variety of cheese available in supermarkets The iron that goes into the steel that goes into a refrigerator bought by a consumer.
What does GDP not tell us about the economy?
What are the main components of measuring GDP with what is produced?
What are the two main difficulties that arise in comparing different comparing GDP?
What is potential GDP?
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3 Explain what happens to the official measure of GDP in each of the following situations. a. Air quality improves significantly throughout Canada, but there are no effects on aggregate production or on market prices of final goods and services. As a result of this, GDP b. The Canadian government spends considerably less on antipollution efforts this year than it did in recent years. As a result of this, GDP c. The quality of cancer treatments increases, so patients undergo fewer treatments, which hospitals continue to provide at the same price per treatment as before. As a result of this GDP
3. Table: Nominal GDP and GDP deflator in 2020 and 2021 Nominal GDP 11000 12150 Year 2020 2021 GDP deflator 105 108 a.(i) Calculate the percentage change in nominal GDP from 2020 to 2021 (ii) What is the purpose of the GDP deflator? b.(1)Calculate real GDP for 2020 & 2021 (ii) What is the percentage increase in real GDP from 2020 to 2021 (iii) Why is the percentage change in nominal GDP higher than real GDP?
1. Suppose that a farmer grows wheat, which she sells to a miller for $10. The miller turns the wheat into flour, which she sells to a baker for $55. The baker turns the wheat into bread, which she sells to consumers for $140. Consumers eat the bread. What is GDP in this economy? 2. Consider the following table showing the breakdown of GDP (in billions) for China. GDP Category Amount (in billions) Consumption 1700 Investment 700 Government 100 Expenditure Exports 50 Imports 40 Using the expenditure approach, calculate GDP for China. 3. Consider the following table showing the breakdown of GDP (in billions) for China. GDP Category Wages and Salaries Consumption Investment Amount (in billions) 1000 1700 700 Depreciation Government 50 100 Expenditure Taxes 300 Exports Imports Income receipts from rest of the world Income payment to rest 50 40 10 50 of the world What are net exports for China? 4. Suppose that GDP in Japan is 1030 and then grows to 1160 (all numbers in billions) What is the…