2. Prime Minister Derpington wants to know about the difference between different macro variables like nominal GDP, real GDP, and how inflation links the two together. She hasn't quite figured out what the difference is yet, and she really needs your help. The following table shows the quantity (in millions) of each good sold as well as the price (in the Derpistani currency, the "Bone" B). Table 1: Derpistan's Economy 2016 2016 2017 2017 2018 2018 Quantity 15 Good Price Quantity 15 Price Quantity 14 Price Friskies Cat Food 12 17 15 Cat Litter 3 50 51 7 52 Mango Salsa Mr. Bill Stuffed Toys Squirt Bottles Canned Tuna 80 8 80 9. 80 10 7 12 13 15 12 18 19 19 15 11 10 10 Insulin 10 12 66 13 56 66 Catnip 12 29 (a) Calculate nominal GDP for 2016, 2017, and 2018. (b) Using 2016 prices, what is Chirpistan's real GDP in 2017 and 2018?

2. Prime Minister Derpington wants to know about the difference between different macro variables like nominal GDP, real GDP, and how inflation links the two together. She hasn't quite figured out what the difference is yet, and she really needs your help. The following table shows the quantity (in millions) of each good sold as well as the price (in the Derpistani currency, the "Bone" B). Table 1: Derpistan's Economy 2016 2016 2017 2017 2018 2018 Quantity 15 Good Price Quantity 15 Price Quantity 14 Price Friskies Cat Food 12 17 15 Cat Litter 3 50 51 7 52 Mango Salsa Mr. Bill Stuffed Toys Squirt Bottles Canned Tuna 80 8 80 9. 80 10 7 12 13 15 12 18 19 19 15 11 10 10 Insulin 10 12 66 13 56 66 Catnip 12 29 (a) Calculate nominal GDP for 2016, 2017, and 2018. (b) Using 2016 prices, what is Chirpistan's real GDP in 2017 and 2018?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

2) A & B

2. Prime Minister Derpington wants to know about the difference between different
macro variables like nominal GDP, real GDP, and how inflation links the two together. She
hasn't quite figured out what the difference is yet, and she really needs your help. The
following table shows the quantity (in millions) of each good sold as well as the price (in the
Derpistani currency, the "Bone" B).
Table 1: Derpistan's Economy
2016
2016
2017
2017
2018
2018
Quantity
15
Good
Price
Quantity
15
Price
Quantity
14
Price
Friskies Cat Food
12
17
15
Cat Litter
3
50
51
7
52
Mango Salsa
Mr. Bill Stuffed Toys
Squirt Bottles
Canned Tuna
80
8
80
9.
80
10
7
12
13
15
12
18
19
19
15
11
10
10
Insulin
10
12
66
13
56
66
Catnip
12
29
(a) Calculate nominal GDP for 2016, 2017, and 2018.
(b) Using 2016 prices, what is Chirpistan's real GDP in 2017 and 2018?

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