2013 2017 2018 Price $150.00 Quantity 45 Quantity 50 2,300 Price $250.00 Price Quantity 40 Product MP3S $200.00 Таcos 2,000 2.00 2,200 2.25 2.40 Coats 300 50.00 310 52.00 350 55.00 1.1 Consider the table above for a simple economy: a) Using 2013 as the base year, calculate nominal GDP, real GDP, and the GDP deflator for 2017 and 2018. b) Using GDP deflator found in part a, calculate the rate of increase in the price level from 2017 to 2018. Show your work

2013 2017 2018 Price $150.00 Quantity 45 Quantity 50 2,300 Price $250.00 Price Quantity 40 Product MP3S $200.00 Таcos 2,000 2.00 2,200 2.25 2.40 Coats 300 50.00 310 52.00 350 55.00 1.1 Consider the table above for a simple economy: a) Using 2013 as the base year, calculate nominal GDP, real GDP, and the GDP deflator for 2017 and 2018. b) Using GDP deflator found in part a, calculate the rate of increase in the price level from 2017 to 2018. Show your work

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The table contains price and quantity information for two vehicle models produced by Ford Motor Company, the F-series trucks and Escape SUVs. 2016 2016 2017 2017 price quantity price quantity Ford Escape SUV's $24,485 307,069 $24,645 308,296 F-Series Trucks $44,400 820,799 $47,800 896,764 A. Calculate the amount contributed by Ford to U.S. GDP (real and nominal) from the sales of the two models in 2016 and 2017. B. Determine the growth rate of nominal GDP (if Ford were the entire economy). C. Determine the growth rate of real GDP (if Ford were the entire economy).
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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:
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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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