A country’s nominal GDP and CPI (consumer price index) are shown in the following table Year 2015 2016 2017 Nominal GDP $4.5 Billion $5.0 Billion $6.0 Billion CPI 100 120 140 If we choose the year 2015 as the base year, then the highest real GDP is in Answers: A. Year 2016 B. Year 2017 C. Year 2015 D. All the same.

Q: The key difference between the GDP deflator and the CPI is that a. the GDP deflator reflects the…

A: The main difference between the CPI and GDP deflator is, GDP deflator reveals the price of all…

Q: Bacon County, Georgia, an area that produces only two products: Pizza and Coke. Year Pizza Produced…

A: GDP is the value of final goods and services produced in the economy within a given period of time

Q: 1. In an economy, there are only two goods (Cars and Cycles) produced. The data for last four years…

A: Answer: The formulas to be used: Calculation of nominal GDP:   Year Nominal GDP 2017 2018…

Q: Suppose that the prices of capital goods (goods purchased by firms as investment) rose. How would…

A: In an economy, capital goods at ethe goods that are produced and consumed for the long-run.

Q: The following table gives nominal GDP and the price index for two years. Find real GDP in each year,…

A: GDP refers to a monetary measure of the market value of all the final products and services…

Q: the following table shows nominal GDP and an appropriate price index for a group of selected years.…

A: The Real GDP can be calculated by the given equation.

Q: The chart gives prices and output information for the country of New Zealand. Use this information…

A: GDP is the gross domestic product. GDP is the market value of all final goods and services produced…

Q: Calculate CPI for all years b. Calculate the basket costs for all year c. Calculate the gdp growth…

A: Given information   2011 2012 2013 2014 Goods P Q P Q P Q P Q Bread 2 100 2 110 3 120 5 120…

Q: The following table gives nominal GDP and the price index for two years. Find real GDP in each year,…

A: Here, the given table provides information about nominal GDP and price index  for 2010 and 2011.

Q: 2. Real versus nominal GDP Consider a simple economy that produces two goods: pencils and envelopes.…

A: According to the question, it is given that : There is a simple Economy that produces two goods :…

Q: Briefly discuss the most important differences between the calculation of the CPI and the GDP…

A: The most important difference between Consumer Price Index (CPI) and the GDP deflator is that CPI…

Q: Question: Answer to Year Nominal GDP Real GDP Price Index 15,200 . Year Nominal GDP Real GDP Price…

A: The following formula is used to compute price index: Price index =Nominal GDPReal GDP

Q: Nominal GDP in 1990 was $40,000, and in 2000 it was $35,000. The GDP deflator was 102 in 1990, and…

A: The GDP deflator is a measure of inflation that reflects the price changes of all goods and services…

Q: Consider a simple economy that produces two goods: cupcakes and oranges. The following table shows…

A: GDP refers to the value of final goods and services produced in an economy over a period of time.…

Q: The following Table 2 gives the consumer price index from year 2012 to 2017. Table 2 Year CPI…

A: Year CPI (2005=100) CPI (2014=100) 2012 102.3   2013 110.5 99.8 2014 111.3 100.0 2015…

Q: 2. Real versus nominal GDP Consider a simple economy that produces two goods: plastic cups and…

A: Nominal GDP refers to the market value of all the final goods and services produced in an economy…

Q: In 2014, Apple’s revenue was $183 billion, and it grew to $267 billion in 2018. a. What is the…

A: Real growth rate is the growth rate adjusted for inflation. CPI is used to measure inflation rate.

Q: Year 1968 1978 1988 1998 2008 Nominal GDP, Billions $909.8 2,293.8 5,100.4 8,793.5 14,441.4 Price…

A: Nominal GDP is the value of goods and services measured at the current prices. Real GDP is the value…

Q: Price Quantity Year (Dollars per plastic cup) (Number of plastic cups) 220 2019 2020 160 120 2021 2…

A: GDP or gross domestic product measures the money value of all final goods and services produced in…

Q: The following table gives nominal GDP and the price index for two years. Find real GDP in each year,…

A: Real GDP (RGDP) = (Nominal GDP / Price index) x 100

Q: Use the concept of real and nominal GDP to compare the years 1980 (Nominal GDP was $2.863 Trillion)…

A: We are going to calculate real GDP using price index levels.

Q: The table below contains data for the country of Greenland, which produces only Apples and Bananas.…

A: Given: The base year is 2017. Years Price of Apples ($) (PA) Quantity of Apples (QA) Price…

Q: Consider the table.   Shirts Pants Year Price Quantity Price Quantity 2013 $5.50 1500…

A: The value of the final products and services produced in a particular year represented in terms of…

Q: For CPI to be a useful price index, we need  a. The foods and services included in CPI to be…

A: The Consumer Price Index (CPI) is an action that inspects the weighted normal of prices of a crate…

Q: Consider an economy that produces and consumes bread and automobiles. The table includes data for…

A: Nominal GDP is that GDP which are measured on current year price level on the other Real GDP is that…

Q: In the year 2000, the CPI was 172.2 and the GDP deflator was 78.7. In 2019, the CPI had risen to…

A: GDP deflator is used to find out the overall inflation rate in the economy. CPI i.e consumer price…

Q: The table below presents a brief summary of City A’s total spending, local GDP, and population…

A: Gross Domestic Product (GDP) measures the value of final goods and services produced within the…

Q: Question 1 You are given with the following data for the country of Myanmar- Goods 2016 2017 Output…

A: Nominal GDP = current year price * current year quantity Note: As you have posted multiple questions…

Q: Nominal versus real GDP. a. Explain the difference between nominal and real GDP. b. Explain in…

A: a)Nominal GDP includes both the growth and prices. Real GDP shows only the growth in the economy.…