An economy produces only fun and food. In 2016 Price The table shows the quantities of fun and food produced and the prices of fun and food in 2016 and 2017. Item Quantity (dollars) Fun 42 The base year is 2016. Food 63 3. Calculate the percentage increase in real GDP in 2017. In 2017 Price Item Quantity (dollars) Fun 42 8 The percentage increase in real GDP in 2017 is percent. Food 64 6. >>> Answer to 1 decimal place.

An economy produces only fun and food. In 2016 Price The table shows the quantities of fun and food produced and the prices of fun and food in 2016 and 2017. Item Quantity (dollars) Fun 42 The base year is 2016. Food 63 3. Calculate the percentage increase in real GDP in 2017. In 2017 Price Item Quantity (dollars) Fun 42 8 The percentage increase in real GDP in 2017 is percent. Food 64 6. >>> Answer to 1 decimal place.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Can you explain the steps briefly please.
Calculate REAL GDP if Nominal GDP is 3600, GDP Deflator is 100 and the price of nutmeg is $12 and the price of grapes is $9.
Question 7
Compute the percentage change in the real GDP in 2018 and 2019 from the preceding year.
I'm stuck need help for second step
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.
Using the table below, Pear Phone Year Price (S) Quantity Price (S) Quantity 2015 3 210 450 54 2016 4 200 500 50 14. Compute nominal GDP in each year. 15. By what percentage did the nominal GDP change between 2015 and 2016? 16. Compute real GDP each year by using "2015" as the base year. 17. By what percentage did real GDP change between 2015 and 2016? 18. By using the table and your answers to #15, and #17, explain (in one or two paragraphs) why "real GDP" is better than "nominal GDP" in measuring the production activity of an eçonomy. LA
1. Which of the following are included in this year’s GDP? Explain your answer in each. A 2-hour decrease in the length of the workweek. The purchase of an AT&T corporate bond. A $2 billion increase in business inventories.
Economics If the prices of German made cars imported into the United States Fall, which answer is correct? Provide justification please thanks A. the consumer price index will fall, but the GDP deflator will not fall B. both the GDP deflator and the consumer price index will fall c. neither the gdp deflator nor the CPI will fall d. the GDP deflator will fall but the consumer price index will not fall. d. the gdp deflator will fall but the consumer price index will not fall.
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
Use following data to answer following questions. A country produces only milk and honey. The base Year 2016 2017 2018 Price of Milk $1 $2 $3 Quantity of Milk 100 Quarts 200 Quarts 200 Quarts year is 2016. Price of Honey $2 $2 $4 Quantity of Honey 50 Quarts 100 Quarts 100 Quarts C):1 a. Calculate the nominal GDP for 2016, 2017 and 2018. b. Calculate real GDP for 2016, 2017, and 2018. c. Calculate growth rate of nominal and real GDP for 2017 and 2018. d. Are nominal and real GDPs same for a given year? Please explain. e. Calculate the inflation rates for 2017 and 2018 using GDP deflator method.