3 5. (Suppose that the following information is given:Year Quantity (# of cars)2008Price (each car) Nominal GDP Real GDP (2009$)$2000010200914$24000$25000201013a) Find the NGDP and RGDP for each year. (3 poi.fra.b) Determine the RGDP growth from 2008 to 2009 and from 2009 to 2010. (-te frrac) Find the implicit GDP deflator for each year and determine the inflation rate from 2008 to 2009and from 2009 to 2010. (5 r feac

"Nominal GDP of any year is computed by multiplying price in that year by the quantity produced in…

5. ( 1Suppose that the following information is given: Year Quantity (# of cars) Price (each car) Nominal GDP Real GDP (2009$) $20000 $24000 2008 10 2009 14 2010 13 $25000 a) Find the NGDP and RGDP for each year. ( pui.fro. b) Determine the RGDP growth from 2008 to 2009 and from 2009 to 2010. (-ge frra c) Find the implicit GDP deflator for each year and determine the inflation rate from 2008 to 2009 and from 2009 to 2010. (5 r feac

5. ( 1Suppose that the following information is given: Year Quantity (# of cars) Price (each car) Nominal GDP Real GDP (2009$) $20000 $24000 2008 10 2009 14 2010 13 $25000 a) Find the NGDP and RGDP for each year. ( pui.fro. b) Determine the RGDP growth from 2008 to 2009 and from 2009 to 2010. (-ge frra c) Find the implicit GDP deflator for each year and determine the inflation rate from 2008 to 2009 and from 2009 to 2010. (5 r feac

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 7PA

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What is the difference between a series of economic data over time measured in nominal terms versus the same data series over time measured in real terms?
2. Activities included (and not included) in the calculation ofGDP The gross domestic product (GDP) of the United States is defined as the all in a given period of time. Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2020. 2020 GDP Scenario Included Excluded An accountant starts a client's 2020 tax return on April 14, 2021, finishing it just before midnight on April 15, 2021. Calculo, a U.S. electronics company, produces a calculator at a plant in Indonesia on March 11, 2020. Calculo imports the calculator into the United States on May 29, 202o. Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 14, 2020. An elementary school student buys the chocolate bar on December 24. Awake Cafe, a U.S. coffee company, produces a latte at its location in Minneapolis on January 6, 2020. It sells the latte to a customer immediately. Graincorp,…
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2. Activities included (and not included) in the calculation ofGDP The gross domestic product (GDP) of the United States is defined as the all in a given period of time. Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2020. 2020 GDP Scenario Included Excluded Sofaland, a Swedish furniture company, produces a table at a plant in Virginia on December 5, 2020. It sells the table to a college student on December 24. You chop down a cherry tree on your property in California and make a dining room table in 2020. A similar table sells for $800 in a local furniture store. Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 21, 2020. It sells the car at a dealership in San Francisco on February 10, 2020. Athleticus, a U.S. shoe company, produces a pair of sneakers at a plant in Vietnam on March 10, 2020. Athleticus imports the pair…
(1A) Assume the economy of country C produces hotdogs and buns in the following quantities and prices in 2016 and 2017. Assume also that 2016 is the base year and the real GDP will be calculated using 2016 prices. What is the real GDP 2017? Hot Dogs Buns Quantity Price Quantity Price Year 2016 (base year) 20 million $2 15 million $1 Year 2017 22 million $3 16 million $2 (a)$90 million.(b)$98 million.(c)$60 million. (1B) In calculating GDP, which component of spending must be subtracted from total spending to account for the fact that not all private or public spending by U.S. households is directed to U.S. businesses? exports domestic imports (1C) The purchase of new capital goods by a business would fall under which component of GDP? (a)Investment(b)Government(c)Consumption
2006 2006 2011 2011 Product Quantity Price Quantity Price Movies 20 $6.00 30 $7.00 Burgers 100 $2.00 90 $2.50 Bikes 3 $1,000.00 6 $1,100.00 Use the information to calculate (a)Nominal GDP of 2011 and (b)Real GDP in the year 2011 (Assume 2006 as the base year). (c)ls it ever possible for Real GDP to be higher than Nominal GDP of any year? when? ( 1-2 LINES ONLY)
11. Differentiate between nominal and real GDP. (Nominal , Real ) GDP is the actual measured GDP in terms of current year dollars or prices existing at the time the output was produced. CNominal, Real) GDP reflects the value of GDP after it has been corrected for price changes compared to the price level in a reference year (called the base year). A GDP price index is calculated each year to measure the level of prices relative to the level of prices in the base year. This price index is then expressed as a percentage of the base year price level
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Using Graph Is there any relationship between the monthly percentage change in rail carload traffic (RCLDPCH) and quarterly percentage change in GDP (QGDPPCH)? Relate potential relationship to disruptions witnessed the last couple of years or economic contraction and expansion in previous years?
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