Consider a simple economy that produces two goods: cupcakes and oranges. The following table showsthe prices and quantities of the goods over a three-year period.CupcakesOrangesYearPriceQuantityPriceQuantity(Dollars per cupcake)(Number of cupcakes)(Dollars per orange)(Number of oranges)2014111021502015 215542152016 31204180Use the information from the preceding table to fill in the following table.Nominal GDPReal GDPYearGDP Deflator(Dollars) (Base year 2014, dollars)201420152016

GDP refers to the value of final goods and services produced in an economy over a period of time.…

Answered: Consider a simple economy that produces…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider a simple economy that produces two goods: stickers and donuts. The following table shows the prices and quantities of the goods over a three-year period. Year 2020 2021 2022 Year 2020 2021 2022 Price (Dollars per sticker) 2 3 2 Stickers From 2021 to 2022, nominal GDP Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP (Dollars) (Base year 2020, dollars) GDP Deflator The inflation rate in 2022 was Quantity (Number of stickers) 255 165 130 and real GDP Donuts Price (Dollars per donut) 2 3 3 Why is real GDP a more accurate measure of an economy's production than nominal GDP? Quantity (Number of donuts) 195 190 195 Real GDP is not influenced by price changes, but nominal GDP is. Real GDP includes the value of exports, but nominal GDP does not. Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods and services an economy consumes.
5. Real versus nominal GDP Consider a simple economy that produces two goods: plastic cups and enamel pins. The following table shows the prices and quantities of the goods over a three-year period. Price Quantity Year (Dollars per plastic cup) (Number of plastic cups) 2017 3 280 2018 2 165 2019 3 145 Use the information from the preceding table to fill in the following table. Year 2017 2018 2019 Nominal GDP (Dollars) Plastic cups Real GDP (Base year 2017, dollars) GDP Deflator From 2018 to 2019, nominal GDP The inflation rate in 2019 was I and real GDP Enamel pins Price (Dollars per enamel pin) 4 4 4 Quantity (Number of enamel pins) 165 220 185
Use the following table to answer the next question. The base year is 2007. Hot Dogs Baseballs Bottles of Soda Price Quantity Price Quantity Price Quantity $5.00 5.00 5.00 8.00 10.00 Year 50 100 100 200 200 $2.00 2.00 2.00 4.00 4.00 2005 $2.00 100 100 4.00 6.00 8.00 10.00 200 Real GDP (constant dollars) for 2005 equals 2006 100 150 2007 100 200 2008 150 200 2009 250 A) $650 O B) $1500 C) $1050 D) $100
The following data represents the output and price of the goods and services produced in the country of Florin in 2018, which specializes in the production of just three things. 2017 is the base year. Production Data Products 2017 Quantity 2017 Price 2018 Quantity 2018 Price haircuts 8 686 face wash 8 3 3.8 prom dresses 2 4 1 5 Calculate Florin's 2017 GDP deflator.
Suppose the following table records the total output and prices of rice and gasoline for an entire economy. This economy produces rice and gasoline only. Further suppose the base year is 2015. Rice Gasoline Year Price Quantity Price Quantity 2015 $8.00 500 $2.00 2000 2016 $9.00 600 $2.30 2000 2017 $10.00 600 $3.00 1800 (1) Compute nominal GDP for 2015, 2016, and 2017. (2) Compute real GDP for 2015, 2016, and 2017. (3) Compute GDP deflator for 2015, 2016, and 2017. (4) Calculate inflation rate from 2016 to 2017 using GDP deflator you calculated above. Write your calculation below:
The country of Huskies produces two goods: footballs and basketballs. Below is a table showing prices and quantities of output for three years: Quantity of Footballs Quantity of Basketballs Price of Price of Year Footballs Basketballs Year 2016 $10 120 $12 200 Year 2017 12 200 15 300 Year 2018 14 180 18 275 a) Calculate nominal GDP for three years b) Calculate real GDP using 2016 as a base year c) Calculate GDP deflator for these three years
Real versus nominal GDP Consider a simple economy that produces two goods: stickers and paper plates. The following table shows the prices and quantities of the goods over a three-year period. Year Stickers Paper plates Price Quantity Price Quantity (Dollars per sticker) (Number of stickers) (Dollars per paper plate) (Number of paper plates) 2020 3 260 2 160 2021 4 120 2 220 2022 3 155 2 140 Use the information from the preceding table to fill in the following table. Year Nominal GDP Real GDP GDP Deflator (Dollars) (Base year 2020, dollars) 2020 2021 2022 From 2021 to 2022, nominal GDP DECREASED OR INCREASED , and real GDP INCREASED OR DECREASED. The inflation rate in 2022 was -13% or -.01% or 13% or 87% or 115%. Why is real GDP a more accurate measure of an economy's production than nominal GDP? a. Real GDP is not influenced by price changes, but nominal GDP is.…
Product A B For the given data, calculate the following: a. Nominal GDP for all the years b. Real GDP for all the years C. GDP Deflator for all the years C Quantity (2017) 45 54 Price (2017) Quantity Price (2018) Quantity (2018) (2019) BD 14 BD 3 58 63 36 BD 20 Note: Use 2017 as the base year in your calculation. 36 BD 16 BD 3-5 BD 25 63 72 45 Price (2019) BD 18 BD 3.75 BD 30
Suppose the economy has only three goods and that the base year is 2015. Year Price of Burgers Quantity of Burgers Price of Soda Quantity of Soda Price of Shoes Quantity of Shoes 2015 $3.42 99 $2.27 192 $63.14 32 2016 $6.56 128 $2.75 212 $89.43 56 2017 $6.56 125 $1.53 157 $74.90 38 Refer to the table above showing data for an economy that produces only the goods shown. What is Nominal GDP for 2017? (Round your answer to two digits after the decimal without the dollar sign without commas and without $.)

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