5. Real versus nominal GDPConsider a simple economy that produces two goods: cupcakes and envelopes. The following table shows the prices and quantities of the goods over athree-year period.CupcakesEnvelopesPriceQuantityPriceQuantityYear (Dollars per cupcake) (Number of cupcakes) (Dollars per envelope) (Number of envelopes)20171110185201815520020193110165Use the information from the preceding table to fill in the folowing table.Nominal GDPReal GDP(Dollars)(Base year 2017, dollars) GDP DeflatorYear201720182019From 2018 to 2019, nominal GDPand real GDPThe inflation rate in 2019 wasWhy is real GDP a more accurate measure of an economy's production than nominal GDP?Real GDP is not influenced by price changes, but nominal GDP is.Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods andservices an economy consumes.O Real GDP includes the value of exports, but nominal GDP does not.

Nominal GDP vs Real GDP Considering that GDP is one of the most important metrics for assessing an…

5. Real versus nominal GDP Consider a simple economy that produces two goods: cupcakes and envelopes. The following table shows the prices and quantities of the goods over a three-year period. Cupcakes Envelopes Price Quantity Price Quantity Year (Dollars per cupcake) (Number of cupcakes) (Dollars per envelope) (Number of envelopes) 2017 1 110 2 185 2018 2 155 200 2019 3. 110 165 Use the information from the preceding table to fill in the folowing table. Nominal GDP Real GDP (Base year 2017, dollars) GDP Deflator Year (Dollars) 2017 2018 2019 From 2018 to 2019, nominal GDP , and real GDP The inflation rate in 2019 was Why is real GDP a more accurate measure of an economy's production than nominal GDP? 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. Real GDP includes the value of exports, but nominal GDP does not.

5. Real versus nominal GDP Consider a simple economy that produces two goods: cupcakes and envelopes. The following table shows the prices and quantities of the goods over a three-year period. Cupcakes Envelopes Price Quantity Price Quantity Year (Dollars per cupcake) (Number of cupcakes) (Dollars per envelope) (Number of envelopes) 2017 1 110 2 185 2018 2 155 200 2019 3. 110 165 Use the information from the preceding table to fill in the folowing table. Nominal GDP Real GDP (Base year 2017, dollars) GDP Deflator Year (Dollars) 2017 2018 2019 From 2018 to 2019, nominal GDP , and real GDP The inflation rate in 2019 was Why is real GDP a more accurate measure of an economy's production than nominal GDP? 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. Real GDP includes the value of exports, but nominal GDP does not.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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 2017 2018 2019 Year 2017 2018 2019 Cupcakes Price (Dollars per cupcake) 1 2 Quantity (Number of cupcakes) 110 140 100 Use the information from the preceding table to fill in the following table Nominal GDP Real GDP (Dollars) (Base year 2017, dollars) Price (Dollars per eraser) 1 Erasers GDP Deflator Quantity (Number of erasers) 180 210 190
Table 1 Product MP3s Tacos Coats 2009 Quantity 40 2,000 300 Price $250.00 2.00 50.00 2012 Quantity 45 2,200 310 Price $200.00 2.25 52.00 Quantity 50 2,300 350 2013 Price $150.00 2.40 55.00 1. Refer to Table 1. Consider the data above for a simple economy: Using 2009 as the base year calculate nominal GDP, real GDP, and the GDP deflator for all three years. Calculate also growth and inflation for these year
3. Calculate real GDP (billion $) with a GDP deflator of 1.25 if the nominal GDP for the year has grown by 50 billion $ and amounted to 1,000 billion $. 56 > >I 8O 00 1708 W
5. An economy produces three goods: laptops, Apple phones, and plums. Production units and prices per unit for years 2020 and 2021 are as follows: 2020 2021 Quantity Price($) | Quantity Price($) Laptops Apple Phones Plums 10 2,000 12 3,000 4 1,000 6. 500 1,000 1 1,000 1 a. What is nominal GDP in 2020 and in 2021? b. Using 2020 as the base year, what is real GDP in 2020 and in 2021? c. What is the percentage increase in real GDP from 2020 to 2021? d. Repeat b. using 2021 as the base year. e. Does the growth rate for real GDP depend on which year is chosen as the base year?
Chapter 14 2012 2013 Item Quantity Price Quantity Price Bananas 100 $10 110 $15 Coconuts 50 $12 60 $10 An island economy produces only bananas and coconuts. The table gives the quantities produced and prices in 2012 and in 2013. 1. Calculate nominal GDP in 2012 and nominal GDP in 2013. R: Nominal GDP in 2013 ($15 x 110) + ($10 x 60)-$1,650+ $600-$2,250. 2. Calculate the value of 2013 production in 2012 prices and the percentage increase in production when valued at 2012 prices. R: 3. Calculate the value of 2012 production in 2013 prices and the percentage increase in production when valued at 2013 prices. R: 4. Use the chained-dollar method to calculate real GDP in 2012 and 2013. In terms of what dollars is each of these two real GDPS measured? R: 5. Using the chained-dollar method, compare the growth rates of nominal GDP and real GDP in 2013. R: Page fof1 21 of 167 wordh Engish (Unimed Statesi Fecua
2013 2017 2018 Quantity 50 2,300 Price Price Quantity 40 Price Quantity 45 Product MP3S $150.00 $200.00 $250.00 Tacos 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 1.2 Give two reasons why GDP does not reflect total production in an economy 1.3 Even though it is generally true that the more goods and services people have, the better off they are, GDP provides only a rough measure of well-being. Assuming language is not an issue, what other factors besides GDP might you consider when deciding where to live and work? Explain
Can you explain the steps briefly please.
Table 23-8A country produces only meat and potatoes in the quantities and prices listed below. Use 2011 as the base year. Year Price of Potatoes Quantity of Potatoes Price of Meat Quantity of Meat 2011 $2.00 10 $20 6 2012 $2.50 15 $22 7 2013 $3.50 20 $25 8 10. Refer to Table 23-8. In 2012, nominal GDP is a. $191.50, and real GDP is $170. b. $157, and real GDP is $170. c. $191.50, and real GDP is $157. d. $170, and real GDP is $227.50.
6) The following table describes the economic activities of a hypothetical economy in a given year. Calculate the value-added at each step of the economic activities and its contribution to GDP. Item Seller Buyer Price ($) Value added ($) Kilogram of Lemons Famer Factory 6. Liter of lemon juice Factory Restaurant 10 Liter of lemon juice used as salad dressing Restaurant Consumers 16
Consider a simple economy that produces two goods: stickers and donuts. The following table shows the prices and quantities of the goods over a three-year period. Stickers Donuts Price Quantity Price Year (Dollars per sticker) (Number of stickers) (Dollars per donut) Quantity (Number of donuts) 2019 2 215 3 155 2020 st 4 135 3 210 2021 2 150 3 190 Use the information from the preceding table to fill in the following table. Nominal GDP (Dollars) Real GDP (Base year 2019, dollars) GDP Deflator Year 2019 2020 2021 From 2020 to 2021, nominal GDP and real GDP ' The inflation rate in 2021 was Why is real GDP a more accurate measure of an economy's production than nominal GDP? Real GDP does not include the value of intermediate goods and services, but nominal GDP does. Real GDP includes the value of exports, but nominal GDP does not. Real GDP is not influenced by price changes, but nominal GDP is.
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.
3 Explain what happens to the official measure of GDP in each of the following situations. a. Air quality improves significantly throughout Canada, but there are no effects on aggregate production or on market prices of final goods and services. As a result of this, GDP b. The Canadian government spends considerably less on antipollution efforts this year than it did in recent years. As a result of this, GDP c. The quality of cancer treatments increases, so patients undergo fewer treatments, which hospitals continue to provide at the same price per treatment as before. As a result of this GDP