5. Real versus nominal GDP Consider a simple economy that produces two goods: coffees and enamel pins. The following table shows the prices and quantities of the goods over a three-year period. Year 2020 2021 2022 Year 2020 2021 2022 Price (Dollars per coffee) 2 2 4 Coffees Quantity (Number of coffees) 295 Use the information from the preceding table to fill in the following table. From 2021 to 2022, nominal GDP The inflation rate in 2022 was 120 Nominal GDP Real GDP (Dollars) (Base year 2020, dollars) GDP Deflator Price (Dollars per enamel pin) and real GDP 4 Enamel pins 4 Why is real GDP a more accurate measure of an economy's production than nominal GDP? Quantity (Number of enamel pins) 195 225 180 O Real GDP is not influenced by price changes, but nominal GDP is. O Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods and services an economy consumes. O Real GDP does not include the value of intermediate goods and services, but nominal GDP does.

5. Real versus nominal GDP Consider a simple economy that produces two goods: coffees and enamel pins. The following table shows the prices and quantities of the goods over a three-year period. Year 2020 2021 2022 Year 2020 2021 2022 Price (Dollars per coffee) 2 2 4 Coffees Quantity (Number of coffees) 295 Use the information from the preceding table to fill in the following table. From 2021 to 2022, nominal GDP The inflation rate in 2022 was 120 Nominal GDP Real GDP (Dollars) (Base year 2020, dollars) GDP Deflator Price (Dollars per enamel pin) and real GDP 4 Enamel pins 4 Why is real GDP a more accurate measure of an economy's production than nominal GDP? Quantity (Number of enamel pins) 195 225 180 O Real GDP is not influenced by price changes, but nominal GDP is. O Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods and services an economy consumes. O Real GDP does not include the value of intermediate goods and services, but nominal GDP does.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. The basket of goods contains 3 Hot Dogs and 3 Hamburgers. Year Price of Price of Hot Dogs Hamburgers 2006 $1.50 $3.45 2007 2008 $2.15 $3.20 $2.10 $4.00 а. Calculate the cost of the basket of goods each year. Show your working. Calculate the CPI for each year using 2007 as the base year. Calculate the inflation rate for each year. b. с.
3. In a small community, breakfast is the most important meal of the day. Therefore, the only two goods that this community produces are coffee and scones in the following amounts: Year 2020 2021 Quantity 60 cups 90 cups Coffee Price $1.25 $1.45 Quantity 45 units 65 units Scones Price $2.10 $3.95 a) Calculate the inflation rate for 2021 using the GDP deflator method (assume that 2020 is the base year for real GDP calculations). Show your work. b) Calculate the inflation rate for 2021 using the CPI method (assume that 2020 is the base year for CPI calculations). Additionally, assume that the consumption basket for both years contains only 10 cups of coffee and 40 scones. Show your work. c) Compare the results of both inflation calculations and explain why they are similar or different based on the two methods and on the specific data used in this example.
5. Real versus nominal GDP Consider a simple economy that produces two goods: cupcakes and erasers. The following table shows the prices and quantities of the goods over a three-year period. Year 2018 2019 2020 Cupcakes Year 2018 2019 2020 Price (Dollars per cupcake) 1 2 4 Quantity (Number of cupcakes) 120 130 130 Price (Dollars per eraser) 1 Erasers 4 4 Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP (Dollars) (Base year 2018, dollars) GDP Deflator and real GDP Quantity (Number of erasers) 195 From 2019 to 2020, nominal GDP The inflation rate in 2020 was Why is real GDP a more accurate measure of an economy's production than nominal GDP? ● Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods and services an economy consumes. 195 145 ● Real GDP is not influenced by price changes, but nominal GDP is. Real GDP includes the value of exports, but nominal GDP does not.
6. The following table shows the CPI for each year from 2009 to 2021 Year CPI 2009 172 2010 177 2011 189 2012 200 2013 212 2014 220 2015 220 2016 230 2017 250 2018 255 2019 270 2020 280 2021 300 (a) In 2010, I deposited $380 in by interest bearing saving account. In 2021, in my account I had $412 expressed in 2013 prices. What is the average annual nominal interest rate I earned on my deposit from 2010-2021? (b) In another account, I deposited $1200 in an interest bearing saving account in 2008. I held the money in the account from 2008-2014. The annual real interest rate I earned on the account was r = 0. How much did I have in my account in 2014 (the nominal value)
Please answer correct calculation asap plz a b and c Don't answer by pen paper plz
Calculate the missing information in the table 1.1 taking into consideration that the base year is2015. Year Price of Books Quantity of Books Price of Socks Quantity of Socks Nominal GDP Real GDP GDP Deflator CPI 2015 10 120 12 200 3600 3600 100 2016 12 300 15 200 6600 5400 122.22 2017 14 275 18 180 7090 4910 144.40
4. Calculate the Nominal GDP, Real GDP using 2019 as the base year, and the GDP Deflator. Year Quantity of Milk 100 Price of Honey $4 $4 Price of Milk Quantity of Honey $2 $4 2017 200 2018 100 210 2019 $4 120 $6 220
15 & 16 please