Calculating Real GDP, Price Indices, and Inflation. Using the data from the table below, answer the following questions: Quantities Produced 2011 2012 CDs 105 125 Tennis Rackets 210 220 Price per CD $21 $25 Prices Price per Tennis Racket $105 $125 Real GDP in 2011 using 2011 prices is $24255. (Enter your response as an integer.) Real GDP in 2012 using 2011 prices is $25725 (Enter your response as an integer.) Real GDP grew by 6.06 percent. (Enter your response as a percentage rounded to two decimal places.) The price index for GDP (GDP Deflator) for 2012 using 2011 as the base year is (Enter your response rounded to two decimal places.)

Calculating Real GDP, Price Indices, and Inflation. Using the data from the table below, answer the following questions: Quantities Produced 2011 2012 CDs 105 125 Tennis Rackets 210 220 Price per CD $21 $25 Prices Price per Tennis Racket $105 $125 Real GDP in 2011 using 2011 prices is $24255. (Enter your response as an integer.) Real GDP in 2012 using 2011 prices is $25725 (Enter your response as an integer.) Real GDP grew by 6.06 percent. (Enter your response as a percentage rounded to two decimal places.) The price index for GDP (GDP Deflator) for 2012 using 2011 as the base year is (Enter your response rounded to two decimal places.)

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter13: Measuring The Economy's Performance

Section: Chapter Questions

Problem 22AA

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A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the following amounts: Karaoke Machines CDs Quantity Price Quantity Price (Dollars) (Dollars) 2020 10 20 50 13 2021 15 30 60 15 Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is . (Note: Use 2020 as the base year, and fix the basket at 1 karaoke machine and 5.
A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the following amounts: Karaoke Machines CDs Quantity Price Quantity Price (Dollars) (Dollars) 2020 10 40 30 10 2021 12 60 50 12 Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is . (Note: Use 2020 as the base year, and fix the basket at 1 karaoke machine and 3 CDs.) Using a method similar to that used to calculate the GDP deflator, the percentage change of the overall price level is . (Note: Again, use 2020 as the base year.) Which of the following statements is correct? 1.The GDP deflator holds the basket of goods and services constant. 2.The inflation rate in 2021 is not the same using the two methods. 3. The CPI allows the basket of goods and services to change.
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