Chapter 14 2012 2013 Item Quantity Price Quantity Price Bananas 100 $10 110 $15 Coconuts 50 $12 60 $10 An island economy produces only bananas and coconuts. The table gives the quantities produced and prices in 2012 and in 2013. 1. Calculate nominal GDP in 2012 and nominal GDP in 2013. R: Nominal GDP in 2013 ($15 x 110)+($10 x 60) -$1,650+ $600-$2,250. 2. Calculate the value of 2013 production in 2012 prices and the percentage increase in production when valued at 2012 prices. R: 3. Calculate the value of 2012 production in 2013 prices and the percentage increase in production when valued at 2013 prices. R: 4. Use the chained-dollar method to calculate real GDP in 2012 and 2013. In terms of what dollars is each of these two real GDPS measured? R: 5. Using the chained-dollar method, compare the growth rates of nominal GDP and real GDP in 2013.

Chapter 14 2012 2013 Item Quantity Price Quantity Price Bananas 100 $10 110 $15 Coconuts 50 $12 60 $10 An island economy produces only bananas and coconuts. The table gives the quantities produced and prices in 2012 and in 2013. 1. Calculate nominal GDP in 2012 and nominal GDP in 2013. R: Nominal GDP in 2013 ($15 x 110)+($10 x 60) -$1,650+ $600-$2,250. 2. Calculate the value of 2013 production in 2012 prices and the percentage increase in production when valued at 2012 prices. R: 3. Calculate the value of 2012 production in 2013 prices and the percentage increase in production when valued at 2013 prices. R: 4. Use the chained-dollar method to calculate real GDP in 2012 and 2013. In terms of what dollars is each of these two real GDPS measured? R: 5. Using the chained-dollar method, compare the growth rates of nominal GDP and real GDP in 2013.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 12RQ: What are the main components of measuring GDP with what is produced?

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Question

100%

Chapter 14
2012
2013
Item
Quantity
Price
Quantity
Price
Bananas
100
$10
110
$15
Coconuts 50
$12
60
$10
An island economy produces only bananas and coconuts. The table gives the quantities
produced and prices in 2012 and in 2013.
1. Calculate nominal GDP in 2012 and nominal GDP in 2013.
R: Nominal GDP in 2013 ($15 x 110) + ($10 x 60)-$1,650+ $600-$2,250.
2. Calculate the value of 2013 production in 2012 prices and the percentage increase in
production when valued at 2012 prices.
R:
3. Calculate the value of 2012 production in 2013 prices and the percentage increase in
production when valued at 2013 prices.
R:
4. Use the chained-dollar method to calculate real GDP in 2012 and 2013. In terms of what
dollars is each of these two real GDPS measured?
R:
5. Using the chained-dollar method, compare the growth rates of nominal GDP and real
GDP in 2013.
R:
Page fof1 21 of 167 wordh
Engish (Unimed Statesi
Fecua

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