3 GDP calculations Consider the following tables of production. Products 1950 Prices 1950 Quantities 1980 Prices Market Activities 20 10 40 1980 Quantities 20 2024 Prices 80 2024 Quantities 40 Home Activities 10 10 8 12 6 14 Table 2: Product prices and quantities These tables correspond to the Years 1950-1980-2024. (a) Compute, using the GDP of market actitivities, the Real GDP in all years using the prices of 1980. Obtain the growth rate from 1950 to 1980 and from 1980 to 2024 (b) Assume we could have used data from Home Activities. Compute the counterfactual GDP that could have included Home Activities. That is, compute the GDP that could have been calculated if we could have obtained that data and treated home activities as a market transaction. (c) How would the growth figure change? Would growth calculations been higher?
3 GDP calculations Consider the following tables of production. Products 1950 Prices 1950 Quantities 1980 Prices Market Activities 20 10 40 1980 Quantities 20 2024 Prices 80 2024 Quantities 40 Home Activities 10 10 8 12 6 14 Table 2: Product prices and quantities These tables correspond to the Years 1950-1980-2024. (a) Compute, using the GDP of market actitivities, the Real GDP in all years using the prices of 1980. Obtain the growth rate from 1950 to 1980 and from 1980 to 2024 (b) Assume we could have used data from Home Activities. Compute the counterfactual GDP that could have included Home Activities. That is, compute the GDP that could have been calculated if we could have obtained that data and treated home activities as a market transaction. (c) How would the growth figure change? Would growth calculations been higher?
Chapter5: Gross Domestic Product
Section: Chapter Questions
Problem 4SQ
Question
Transcribed Image Text:3
GDP calculations
Consider the following tables of production.
Products
1950 Prices 1950 Quantities
1980 Prices
Market Activities
20
10
40
1980 Quantities
20
2024 Prices
80
2024 Quantities
40
Home Activities
10
10
8
12
6
14
Table 2: Product prices and quantities
These tables correspond to the Years 1950-1980-2024.
(a) Compute, using the GDP of market actitivities, the Real GDP in all years using the prices of 1980. Obtain the
growth rate from 1950 to 1980 and from 1980 to 2024
(b) Assume we could have used data from Home Activities. Compute the counterfactual GDP that could have
included Home Activities. That is, compute the GDP that could have been calculated if we could have
obtained that data and treated home activities as a market transaction.
(c) How would the growth figure change? Would growth calculations been higher?
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