Question 3Calculate the missing information in the table 17.1.YearReal GDPNominal GDPGDPPrice ofPrice ofDeflatorDrapes($ per Nutmeg) ($ per Drapes)8.Nutmeg20132700701020143600100126.2015360046801410

GDP deflator can be expressed as, GDP Deflator=Norminal GDPReal GDP×100

Calculate the missing information in the table 17.1. Year Real GDP Nominal GDP GDP Deflator Price of Price of Drapes ($ per Nutmeg) ($ per Drapes) 8. Nutmeg 2013 2700 70 10 2014 3600 100 12 6. 2015 3600 4680 14 10

Calculate the missing information in the table 17.1. Year Real GDP Nominal GDP GDP Deflator Price of Price of Drapes ($ per Nutmeg) ($ per Drapes) 8. Nutmeg 2013 2700 70 10 2014 3600 100 12 6. 2015 3600 4680 14 10

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 2a) What is the Consumer Price Index (CPI)?b) Consider an economy that produces and consumes shoes and houses. In thetable below are data for two different users.Year2000Year2001 Price of a house $120,000 $145,000Price of a pair of shoes $150 $170Number of houses produced 1,000 1,050Number of pairs of shoes 650,000 525,000(i) Calculate the CPI for both years.(ii) Calculate the rate of inflation for 2001 using the CPI.(iii) Calculate the GDP deflator for both years.(iv) Calculate the rate of inflation for 2001 using the GDP deflator.
Note:Hand written solution not allowed.
Year Cost of a basket (R) of consumer goods/services (Base year ) 2015 1850 2016 2190 2017 2380 2018 2560 Use the information in Table 3 to measure the consumer price index for 2016, 2017 and 2018 respectively. Show your calculations and round off to two decimal places. Show how gross national product (GNI) can be derived from gross domestic product (GDP). Explain, with the aid of an equation, the components of the consumption function. Explain the relationship between Investment spending and the interest rate.