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o Calculate the constant flows based on year zero of the following current data
o What is the real rate of the flows if the market rate is 18%
o In constant pesos, what is the value of the flows in 2015
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- Suppose the information in the following table is for a simple economy that produces only the following four goods: shoes, hamburgers, shirts, and cotton. Further, assume that all of the cotton is used to produce shirts. Product Shoes Hamburgers Shirts Cotton 2009, then the nominal GDP for 2017 equals: O 18672.5 O 8250 O8750 2009 Statistics Quantity 100 85 60 11,000 O 10422.5 Price $52.00 3.00 35.00 0.85 2016 Statistics Quantity 115 120 55 10,000 Price $65.00 3.00 30.00 0.70 2017 Statistics Quantity 110 135 75 11,000 Price $70.00 3.50 30.00 0.75 If the base year is the yearQuestion 2 The GDP deflator in year 4 is 120 and the GDP deflator in year 5 is 130. The rate of inflation between years 4 and 5 is O -10%. O 7.7%. O 8.33%. O 10%.The table below lists the prices from last year and the base year for a college-related basket of goods. Assume that the typical basket of goods for a college student consists of 190 gallons of gas, 65 pizzas, 50 6-packs, and 4 textbooks. Basket of College-Related Goods Basket of Goods Gasoline (per gallon) Pizza (per pizza) Beer (per 6-pack)> Textbook (per book) Price Base Year (dollars) $ 1.50 3.90 4.00 96.00 Price Last Year (dollars) $ 1.90 7.75 6.76 225.00 Instructions: Round your answers to two decimal places. a. Using the values above, what is the rate of inflation between the base year and last year? % b. Assume that rather than buying textbooks for their courses last year, all students decided to buy online access cards at $105 per textbook. What is the rate of inflation between the base year and last year now? %
- MEEN1C | CLO 1 Prices of gasoline in the United States are forecast to increase by 7% in 2030. If the current average prices of gasoline in the United States stand at $3 per gallon, in 2020, What would be the average annual inflation rate over the forecast period. O The average annual rate of increase in the price of gasoline is 10% O The average annual rate of increase in the price of gasoline is 0.68% O The average annual rate of increase in the price of gasoline is 96.00% O The average annual rate of increase in the price of gasoline is 1.10%5.0 4.0 3.0 2.0 1.0 1975 1985 1995 2005 Year In the above figure, which period(s) show deflation? O Only from 1995 to 2005. O Only from 1985 to 1995. O None of the above because there is no year with deflation in the above figure. O From both 1975 to 1985 and from 1995 to 2005. Inflation rate (percent per year)Find the present worth today in real value corresponding to the cur- rent values shown below for a 4 percent inflation rate and a 4 percent interest rate. 9.3 a. $400 three years from now b. $400 three years ago c. $10 next year d. $350 983 in 10 years from now e. £l one thousand years ago f. $1 000 000 000 three hundred vears from now
- GDP in an economy is $23,600 billion. Consumer expenditures are $18,000 billion, corporate profits are 600 billion, government purchases are $6,000 billion, and gross private domestic investment is $300 billion, stock purchases are $500 billion. What is the value of the net exports? O+$400 billion O-$700 billion O-$1.800 billion O-$300 billion O+$500 billionThe seasonally adjusted data below depict the performance of the economy of the United States in five quarters of 1953-1954. Year/Quarter 1953/Q4 1954/Q1 1954/02 1954/Q3 1954/04 Select one: OA. 1953/04. Annual Percent Change Nominal GDP OB. 1954/01 O C. 1954/02. O D. 1954/03. QE. 1954/04. -5.2 -0.6 0.8 5.1 9.2 Real GDP in the United States was lowest in which of the following quarters? Annual Percent Change Real GDP -5.9 -1.9 0.4 4.6 8.1Question 7 Which of the following would be counted in this year's GDP? O a O b O C Od Question & What is the difference between real GDP and nominal GDP? O a O b Column A 1. 2. C d Question 9 Match each phase of the business cycle to its correct definition. 3. The bonus check a worker receives this year the value of a loan taken out this year The value of a savings bond sold by the federal government to investors this year The value of a television produced last year but sold this year 4 Real GDP allows for depreciation; nominal GDP allows for no depreciation. Real GDP includes nonmarket activities; nominal GDP has no nonmarket activities. Real GDP is based on constant prices; nominal GDP is based on the current year's prices. Real GDP is accurate to hundreds of dollars; nominal GDP is accurate to thousands of dollars. period of economic decline marked by falling real GDP a period of economic growth as measured by a rise in real GDP the height of an economic expansion, when real GDP…
- 3. Suppose an economy has two years worth of data, years 1 and 2. Sup- pose there are also two goods, bread and corn. Suppose, in year one, 30 units of corn are sold at a price of 1 $ and 20 units of bread are sold at a price of 2 S. Suppose in year two, 60 units of corn are sold at a price of 1.5 $ and 80 units of bread are sold at a price of 4 $. Compute nominal GDP in both periods. Compute real GDP under both defini tions of a base year. Compute also a chain weighted real GDP series. For all three measures, compute the GDP deflatorIllustrate how we may convert actual dollars into constant dollars of the base year or vice versa?Real GDP is equal to the sum of current year prices multiplied by base year quantities. Select one: O True O False