An imaginary economy produces five (5) types of goods as follows: Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 A 200 220 240 280 300 320 350 400 500 B 180 200 250 300 350 380 400 450 500 C 100 130 180 220 280 300 400 450 500 D 120 150 200 250 300 350 400 500 600 E 50 70 80 90 100 120 130 150 200 Price A 100 120 140 140 150 180 200 300 350 Price B 200 250 300 350 380 450 500 400 500 Price of C 50 60 80 90 110 150 200 300 400 Price of D 20 25 30 40 60 80 100 200 300 Price of E 40 60 80 100 120 140 160 200 350 Calculate nominal GDP. Calculate real GDP using 2017 as the base year. Compute the average growth rate in real GDP from 2013 to 2020 and comment on your result.
An imaginary economy produces five (5) types of goods as follows: Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 A 200 220 240 280 300 320 350 400 500 B 180 200 250 300 350 380 400 450 500 C 100 130 180 220 280 300 400 450 500 D 120 150 200 250 300 350 400 500 600 E 50 70 80 90 100 120 130 150 200 Price A 100 120 140 140 150 180 200 300 350 Price B 200 250 300 350 380 450 500 400 500 Price of C 50 60 80 90 110 150 200 300 400 Price of D 20 25 30 40 60 80 100 200 300 Price of E 40 60 80 100 120 140 160 200 350 Calculate nominal GDP. Calculate real GDP using 2017 as the base year. Compute the average growth rate in real GDP from 2013 to 2020 and comment on your result.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
An imaginary economy produces five (5) types of goods as follows:
|
Year |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
|
A |
200 |
220 |
240 |
280 |
300 |
320 |
350 |
400 |
500 |
|
B |
180 |
200 |
250 |
300 |
350 |
380 |
400 |
450 |
500 |
|
C |
100 |
130 |
180 |
220 |
280 |
300 |
400 |
450 |
500 |
|
D |
120 |
150 |
200 |
250 |
300 |
350 |
400 |
500 |
600 |
|
E |
50 |
70 |
80 |
90 |
100 |
120 |
130 |
150 |
200 |
|
|
100 |
120 |
140 |
140 |
150 |
180 |
200 |
300 |
350 |
|
Price B |
200 |
250 |
300 |
350 |
380 |
450 |
500 |
400 |
500 |
|
Price of C |
50 |
60 |
80 |
90 |
110 |
150 |
200 |
300 |
400 |
|
Price of D |
20 |
25 |
30 |
40 |
60 |
80 |
100 |
200 |
300 |
|
Price of E |
40 |
60 |
80 |
100 |
120 |
140 |
160 |
200 |
350 |
- Calculate nominal
GDP . - Calculate real GDP using 2017 as the base year.
- Compute the average growth rate in real GDP from 2013 to 2020 and comment on your result.
- Compute inflation for 2020 using the GDP deflator with year 2016 as the base year.
- How does the inflation rate change in (d) above if the base year is shifted to 2012? Comment on your answer.
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