Answer these questions about GDP: a. Could next year’s real GDP exceed next year’s nominal GDP? b. Could real GDP grow at the same time that real GDP per capita falls? c. Could people’s real consumption possibilities expand at the same time that real GDP per capita falls? d. How does changing amount of leisure complicate comparisons of real well-being over time?

Answer these questions about GDP: a. Could next year’s real GDP exceed next year’s nominal GDP? b. Could real GDP grow at the same time that real GDP per capita falls? c. Could people’s real consumption possibilities expand at the same time that real GDP per capita falls? d. How does changing amount of leisure complicate comparisons of real well-being over time?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter19: Measuring Economic Performance

Section: Chapter Questions

Problem 11P

See similar textbooks

Similar questions

a) Calculate GDP Deflator of 2009. b) Calculate the Growth rate of real GDP of 2009. c) What can you conclude from your answer to part a. d) What can you conclude from your answer to part b. please show all calculation .Answer must be correct. Answer follow image
using the table below giving the quantity and price of goods producedin an economy in two periods in suitable units, assuming that there are only three goodsproduced in the economy. Consider the economy described above a) What is nominal GDP in 2003 and in 2004? By what percentage does nominalGDP change from 2003 to 2004?b) Using the prices for 2003 as the set of common prices, what is real GDP in 2003and in 2004? By what percentage does real GDP change from 2003 to 2004?c) Using the prices for 2004 as the set of common prices, what is real GDP in 2003and in 2004? By what percentage does real GDP change from 2003 to 2004?d) Why are the two output growth rates constructed in (b) and (c) different? Whichone is correct? Explain your answer.
By how many times, respectively, did benefits, environmental costs, and social and economic costs increase between 1950 and 2004? How are trends in each of these components driving the overall trend between the GPI and the GDP? Which component has gotten the worst over the years? How would you account for these trends?
Government purchases of goods and services = $100 %3D Government Taxes $100 Wages, profit, interest, Consumer Households spending = $650 %3D rent = $750 %3D Factor Markets for goods and services markets Wages, profit, interest, rent = $750 Gross domestic product %3D Firms Exports = $20 %3D Rest of world Imports $20 %3D
a) Calculate GDP Deflator of 2009. b) Calculate the Growth rate of real GDP of 2009. c) What can you conclude from your answer to part a. d) What can you conclude from your answer to part b. Please answer all and answer must be correct
#*
Which of the following statements is TRUE? Select one: a. Potential GDP is the same as real GDP. b. Real GDP fluctuates around potential GDP. c. When all of the economy's resources are fully employed, the value of production is called real GDP. d. Potential GDP fluctuates around real GDP.
What impact would each of following have in on real gdp ?would economic well being increase or decrease as a result? A. Averege, people in a country decide to increase the number of hours they work by 5%. b. Spending on Homeland security increase in response to terrorist attack
2. What be an impact on economy by achieving GDP?
a. The paradox of thrift is based on a circular flow of the economy in which current spending drives future spending. Explain the paradox of thrift. b. Why do you think households’ purchase of new housing is included in the investment components of GDP rather than the consumption component? c. What is the difference between GDP and GNP? Which one is the better measure of income? Why?
a. If the GDP deflator is 125 in a country whose real GDP is calculated as 400 billion TL in 2019, what is its nominal GDP? b. If the economy in option a grew by 10% in 2020, what is the real GDP in 2020?
Assume a simple economy that only produces two goods for end use, beer and wine. Here is a list of production and prices in 2019 and 2020. 2019 2020 Liter Price Liter Price Wine 100 1 100 1,1 Вeer 50 1 55 1 1. How high is the growth rate in nominal and real GDP? 2. Assume that it turns out that it failed to take into account that the quality of the beer deteriorated between 2019 and 2020. It is estimated that the quality-adjusted production of beer has been constant over the two years. Show how this affects the calculation of the two growth rates.