**Question 2**Complete the following table for a given country and show how you can determine if the country faces an inflation in 2018?| | Nominal GDP2017 | | Nominal GDP2018 | | Real GDP2018 | ||---------------|---------------------------|-----------------------------------|---------------------------|-----------------------------------|-------------------------|-----------------------------------|| | Q | P | Q | P | Q | P || C | 4 | 2 | 3 | 4 | | || I | 3 | 3 | 4 | 3 | | || G | 6 | 2 | 5 | 3 | | || GDP | | | | | | |**Explanation:**- **Q** represents the quantity of goods and services.- **P** represents the prices of those goods and services. To determine if a country faces inflation in 2018, analyze the changes between the Nominal GDP and Real GDP. Inflation implies an increase in the general price level of goods and services.1. **Calculate Nominal GDP:** - For each year, multiply quantity (Q) by price (P) for each category (C, I, G) to find the GDP.2. **Calculate Real GDP for 2018:** - Use the prices (P) from 2017 and the quantities (Q) from 2018 to find Real GDP. This adjusts the GDP for inflation by removing the effect of price changes.3. **Compare GDPs:** - A rise in Nominal GDP that is not reflected in the Real GDP suggests inflation, as the increase in Nominal GDP is due to higher prices rather than increased production.**Calculations:**- For **2017**, calculate Nominal GDP: - C: $ 4 \times 2 = 8 $ - I: $ 3 \times 3 = 9 $ - G: $ 6 \times 2 = 12 $ - Total Nominal GDP2017: \( 8 + 9 + 12 = 29 \

here we calculate the real GDP , Nominal GDP , GDP deflator and Inflation rate and fill the table so…

Answered: Complete the following table for a…

Complete the following table for a given country and show how can you determine if the country faces an inflation in 2018? Nominal GDP2017 Nominal GDP2018 Real GDP2010 P P 4 2 3 4 3 4 3. 6. 2 3 GDP

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

1. Calculating inflation using a simple price index Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student's annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017. Perform these same calculations for 2018 and 2019, and enter the results in the following table. 2017 2018 2019 Price Cost Price Cost Price Cost Quantity in Basket (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) Notebooks 15 2 30 8 Calculators 1 70 70 100 130 Large coffees 250 2 500 2 Energy drinks 50 2 100 4 Textbooks 10 120 1,200 150 180 Total cost 1,900 Price index 100 Suppose the base year for this price index is 2017.
An economy produces three products, bags, computers and shirts. The prices and quantities of these products in 2020 and 2021 are shown in the table below: 2020 2021 Price Price Quantity Quantity 300 $10 $12 330 Bags Computers $600 100 $650 110 Shirts $18 2,000 $20 2,200 2020 2021 Measure the nominal and real GDP for 2019 and 2020, using 2020 as the base year. Measure the nominal and real GDP growth rate in 2021. Which value is more accurate in measuring the growth rate of the economy? Explain. (b) The information on price and quantity of three products consumed by a typical household in the year 2020 and 2021 is given by the table below 2020 2021 Price Quantity Price 10 Quantity $5 $5.50 12 Fish Beef $10 5 $11 4 Train Ride $8 20 $9 22 Using 2020 as the base year, measure the CPI for 2021 and the inflation rate in 2021. Does this inflation rate correctly measure the cost of living changes for households in 2021? Explain.
Calculate the inflation rate using the GDP deflator based on the Laspeyres, Paasche, and chain- weighted indexes of GDP (use the approximate formula).
The table below contains data for the country of Greenland, which produces only Apples and Bananas. The base year is 2017. Quantity of Price of Apples Quantity of Year Price of Price of waffles Apples Bananas Bananas 2017 $12 60 $ 4 250 2018 14 75 6 280 2019 17 90 8 300 2020 19 100 10 325 - Compute: nominal GDP, real GDP, GDP deflator, and Inflation rate in 2020.
compare and contrast the calculations for the consumer price index and the GDP price index as measures of inflation.
https://www.federalreserve.gov/aboutthefed/educational-tools/lecture-series-origins-and-mission.htm
Nominal GDP 2018 = $24,200 What is the “real” 2018 GDP measure in 2012 prices if the 2018 price index is 1.05?
The table below presents a brief summary of City A’s total spending, local GDP, and population changes. Read the table and answer the following questions. 2010 2020 Total spending ($ million) 89 104.12 Local GDP ($ millions) 110 134 Population 50,000 56,275 CPI deflators (2012=1) 0.96 1.05 Calculate % change for City A’s total spending from 2010 to 2020 in current dollars. *Results round to the nearest 2 decimal places. Calculate % change for City A’s total spending from 2010 to 2020 in constant dollars. *Results round to the nearest 2 decimal places. Why does % change calculated from constant dollars differ from % change calculated from current dollar? Calculate per capita spending in 2010 and 2020, respectively, using constant dollars. *Results round to the nearest dollar. 2010 per capita spending: 2020 per capita spending: Calculate the compound annual growth rate of per capita spending from 2010 to 2020…
Suppose that nominal GDP was $9250000.00 in 2005 in Orange County California. In 2015, nominal GDP was $12000000.00 in Orange County California. The price level rose 2.00% between 2005 and 2015, and population growth was 3.25%. Calculate the following figures for Orange County California between 2005 and 2015. Give all answers to two decimals. a. Nominal GDP growth was b. Economic growth was %. c. Inflation was d. Real GDP growth was e. Per capita GDP growth was f. Real per capita GDP growth was
Consider the table below Year CPI CPI Inflation Real GDP Nominal GDP GDP Deflator GDP Inflation 2005 94.27 x 4726.50 4480.00 94.78 x 2006 100.00 a 5090.50 d 100.00 5.50 2007 b 3.42 5430.85 5655.95 104.14 e 2008 117.18 c f 6887.00 117.34 12.67 Based on the values of the table, what is the value of f ? (Please round your answer to include 2 decimal places.)
In macroeconomics, how can you tell when someone has worked too hard or too little during a period of inflation? Please answer numerically and graphically.
Consider the table below Year Fruit Index Fruit Inflation Real GDP Nominal GDP GDP Deflator GDP Inflation 2005 93.34 x 4757.40 4452.00 93.58 x 2006 100.00 a 5121.40 d 100.00 6.86 2007 b 3.97 5543.05 5784.05 104.35 e 2008 112.32 c f 6701.80 113.60 8.87 Based on the values of the table, what is the value of c? (Please round your answer to include 2 decimal places.)