Based on the table below, calculate nominal GDP, real GDP, the GDP deflator, and the inflation rate in each year and fill in the missingparts of the table. Use 2016 as the base year.Instructions: Round nominal and real GDP values to two decimal places. Round GDP deflator and inflation rate values to the nearestwhole number.Price of Quantity ofPrice ofQuantity oforangebeachYearoranges($)balls($)beach ball Nominal GDP Real GDP($)($)InflationGDP deflatorrate (%)20167001.508005.0020177001.009507.5020186501.7514008.75

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Answered: Based on the table below, calculate…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The table below shows nominal GDP (Y) data for Dream Island for 1990 and 2005. Also shown are data for the GDP deflator (P) and the population (N). Calculate annual growth rates for GDP and population and the average inflation rate for the 15 years. Then calculate real GDP growth and per- capita, real GDP growth annually for that period. Year Nominal GDP deflator Population GDP (1997-100) (in millions) (in $ millions) 1990 2708 71.7 220 2005 6738 126.1 260 a. Growth rate of Nominal GDP = b. Inflation rate = c. Growth rate of population = d. Growth rate of real GDP = e. Growth rate of real GDP per capita =
Product The GDP in China is $12.2 trillion. The rate of inflation is 2.5%. If the population of China is 1,421,021,000, find the per capita GDP in this country. per capita GDP = $ [?] Round to the nearest hundredth. Copyright © 2003-2022 International Academy of Science. All Rights Reserved. P in China is $12.2 trillion. The rate of mis 2.5%. If the population of China is 21,000, find the per capita GDP in this country. H t Enter a H M D
GDP in the U.S. in 2000 was $10.1 trillion dollars and GDP in 2008 was $14.3 trillion. The CPI in 2000 was 172.2 and the CPI in 2008 was 215.3 (The CPI in 2009 was 214.5) What was Real GDP in 2008 (in 2009 $)? $14.25 trillion $11.48 trillion $17.81 trillion $14.35 trillion Question 30 (S What was the economic growth rate between 2000 and 2008? Growth rate= RGDP (2)-RGDP (1) 100 RGDP (1) A
Which of the following statements are correct? Select one or more: a. To find GDP at constant prices we can use the CPI to deflate GDP at current prices b. Inflation is measured by calculating the cost of a given bundle of goods. c. The basket of goods used to calculate CPI inflation is fixed for long periods d. Some price indices adjust for the change in the quality of goods over time, as well as the change in prices.
QUESTION 19 In an imaginary economy, consumers buy only sandwiches and hamburgers. The typical consumer consumes 10 sandwiches and 6 hamburgers. A sandwich cost $3 in 2020 and $5.40 in 2021. A hamburger cost $5 in 2020 and $6 in 2021. Which of the following statements is correct? When 2007 is chosen as the base year, the inflation rate is 50 percent in 2007 O When 2006 is chosen as the base year, the consumer price index is 90 in 2007. O When 2006 is chosen as the base year, the inflation rate is 150 percent in 2007. When 2006 is chosen as the base year, the inflation rate is 5 percent in 2007 When 2007 is chosen as the base year, the consumer price index is 100 in 2006. O O
You are trying to decide whether to use the GDP deflator or the CPI to calculate the inflation rate in an economy. You will decide to use the GDP deflator if Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a you want to make sure you include all goods and services captured in GDP b you are only concerned about prices that firms face C you are only concerned about prices consumers face d you want to make sure you include all transactions that take place in the economy
Consider a fictional price index, the University Student Price Index (USPI), based on a typical university student's annual purchases. Suppose the following table shows information on the market basket for the USPI and the prices of each of the goods in 2016, 2017, and 2018. The cost of each item in the basket and the total cost of the basket are shown for 2016. Perform these same calculations for 2017 and 2018, and enter the results in the following table. 2016 2017 2018 Price (Dollars) Cost (Dollars) Price (Dollars) Cost (Dollars) Quantity in Basket Notebooks 10 3 30 3 Calculators 1 75 75 80 Large coffees 300 2 600 2 Energy drinks 75 2 150 4 Textbooks 8 90 720 110 Total cost 1,575 100 Price index Suppose the base year for this price index is 2016. In the last row of the table, calculate and enter the value of the USPI for the remaining years. Between 2016 and 2017, the USPI increased by %. Between 2017 and 2018, the USPI increased by % Which of the following, if true, would…
Calculating inflation using a simple price index
Refer to the following table. Suppose the CPI basket consists of 10 pies of pizza and 20 bottles of milk respectively, and 2020 is the base year. Year Price of pizza Price of milk 2020 $250 $40 2021 $280 $45 а. Calculate the CPI in 2020 and 2021 respectively. What is the inflation rate in 2021? b. Suppose the minimum wage is $37.5 per hour in 2020, how much would it be in 2021 in order to maintain the same purchasing power in 2020?. С. Which one do you think is a better measure of a household's cost of living, CPI or GDP deflator? Why?*
Use the information from the preceding table to fill in the following table. Year Nominal GDP Real GDP GDP Deflator 2018 410 410 100 2019 1170 585 200 2020 1080 480 225 From 2019 to 2020, nominal GDP (increase or decrease) , and real GDP (increase or decrease) . The inflation rate in 2020 was (-12.5%, 0.1%, 12.5%, 88.9%, 112.5%) .
Consider a simple economy that produces two goods: pencils and envelopes. The following table shows the prices and quantities of the goods over a three-year period. Price Year (Dollars per pencil) 2016 2 2017 4 2018 2 Year 2016 2017 2018 Pencils Use the information from the preceding table to fill in the following table. From 2017 to 2018, nominal GDP Quantity (Number of pencils) 125 135 125 The inflation rate in 2018 was Nominal GDP Real GDP (Dollars) (Base year 2016, dollars) GDP Deflator Price (Dollars per envelope) 3 3 3 and real GDP Envelopes Why is real GDP a more accurate measure of an economy's production than nominal GDP? Quantity (Number of envelopes) 155 O Real GDP includes the value of exports, but nominal GDP does not. Real GDP is not influenced by price changes, but nominal GDP is. Real GDP does not include the value of intermediate goods and services, but nominal GDP does. 210 165
Consider the price and quantity information for the three goods listed in the table below. You may assume the base year is 2018. Item Quantity Price Price Quantity 2018 2018 2019 2019 Movie $10 $11.87 14 tickets Bags of 2 $3 $3.24 6 popcorn Drinks of soda 16 $1 $1.71 Based on the GDP deflator method, what was the rate of inflation between the two years? Round your answer to two decimal places. Do not enter a percent sign. SUS

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