Consider a simple economy that produces two goods: pens and oranges. The following table shows the prices and quantities of the goods over athree-year period.PensOrangesPriceQuantityPriceQuantityYear(Dollars per pen)(Number of pens)(Dollars per orange)(Number of oranges)2016145195201721654.225201831104165Use the information from the preceding table to fill in the following table.Real GDPNominal GDPGDP Deflator(Dollars)(Base year 2016, dollars)Year201620172018, and real GDPFrom 2017 to 2018, nominal GDPThe inflation rate in 2018 wasWhy is real GDP a more accurate measure of an economy's production than nominal GDP?O Real GDP includes the value of exports, but nominal GDP does not.MacBook Air Year(Dollars per orange)(Number of oranges)201611451952017165422520181104165Use the information from the preceding table to fill in the following table.Nominal GDPReal GDPYear(Dollars)(Base year 2016, dollars)GDP Deflator201620172018From 2017 to 2018, nominal GDPand real GDPThe inflation rate in 2018 wasWhy is real GDP a more accurate measure of an economy's production than nominal GDP?O Real GDP includes the value of exports, but nominal GDP does not.O Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the gods andservices an economy consumes.O Real GDP is not influenced by price changes, but nominal GDP is.

nominal GDP = value of goods and services in a given year evaluated at the current year prices real…

Consider a simple economy that produces two goods: pens and oranges. The following table shows the prices and quantities of the goods over a three-year period. Pens Oranges Price Quantity Price Quantity Year (Dollars per pen) (Number of pens) (Dollars per orange) (Number of oranges) 2016 1 145 195 2017 2 165 4. 225 2018 3 110 4 165 Use the information from the preceding table to fill in the following table. Real GDP Nominal GDP GDP Deflator (Dollars) (Base year 2016, dollars) Year 2016 2017 2018 , and real GDP From 2017 to 2018, nominal GDP The inflation rate in 2018 was Why is real GDP a more accurate measure of an economy's production than nominal GDP? OReal GDP includes the value of exports, but nominal GDP does not. MacBook Air

Consider a simple economy that produces two goods: pens and oranges. The following table shows the prices and quantities of the goods over a three-year period. Pens Oranges Price Quantity Price Quantity Year (Dollars per pen) (Number of pens) (Dollars per orange) (Number of oranges) 2016 1 145 195 2017 2 165 4. 225 2018 3 110 4 165 Use the information from the preceding table to fill in the following table. Real GDP Nominal GDP GDP Deflator (Dollars) (Base year 2016, dollars) Year 2016 2017 2018 , and real GDP From 2017 to 2018, nominal GDP The inflation rate in 2018 was Why is real GDP a more accurate measure of an economy's production than nominal GDP? OReal GDP includes the value of exports, but nominal GDP does not. MacBook Air

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: cupcakes and erasers. The following table shows the prices and quantities of the goods over a three-year period. Cupcakes erasers price quantity price quantity year (dollars per cupcakes) (number of cupcakes) (dollars per erasers) (number of eraser) 2016 2 125 3 155 2017 4 135 3 210 2018 2 125 3 165 Use the information from the preceding table to fill in the following table. Year Nominal GDP (dollars) Real GDP (base year 2016, dollars) GDP Deflator 2016 2017 2018 From 2017 to 2018, nominal GDP_______ (decreases/increased) , and real GDP_______(decreased/increased) . The inflation rate in 2018 was___________(-23.1% / -0.2% / 23.1% / 76.9% / 130%) Why is real GDP a more accurate measure of an economy's production than nominal GDP? Real GDP does not include the value…
Table 1 shows some data on the prices and quantities for a simple economy that produces the following goods and services. Table 1: Price and quantity for three types of product Product Year 2017 Year 2018 Year 2019 Price Quantity Price Quantity Price Quantity (RM) (RM) (RM) A 1 180 1 200 1.25 200 90 75 90 100 100 120 C 0.6 675 0.5 600 0.5 630 (i) Compute the values of nominal GDP in 2017, 2018 and 2019. Compute the values of real GDP and GDP deflator in 2018 and 2019 (using 2017 as the base year). (ii) Compute the percentage change in the real GDP in 2018 and 2019 from the preceding year. (iii)
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Q1 An economy produces two goods: hot dogs and burgers. In 2014, 15 hot dogs are produced at a price of $2 each, and 20 burgers at a price of $7 each. In 2015, 20 hot dogs are produced at a price of $4 each, and 30 burgers at a price of $8 each. Find the following: Nominal GDPs
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4. GDP vs Real GDP Consider a simple economy that produces two goods: cupcakes and oranges. The following table shows the prices and quantities of the goods over a three-year period. Cupcakes Oranges Price Quantity Price Quantity Year (Dollars per cupcake) (Number of cupcakes) (Dollars per orange) (Number of oranges) 2008 1 120 190 2009 160 4 200 2010 130 4 195 Use the information from the previous table to fill in the following table. GDP Real GDP Year (Dollars) (Base year 2008, dollars) 2008 2009 2010 From 2009 to 2010, GDP and real GDP Why is real GDP a more accurate measure of an economy's production than GDP? Real GDP includes the value of exports, but GDP does not. Real GDP does not include the value of intermediate goods and services, but GDP does. Real GDP is not influenced by price changes, but GDP is. 2. 3.
Consider a simple economy that produces two goods: pencils and oranges. The following table shows the prices and quantities of the goods over a three-year period. Pencils Oranges Price Price Quantity Quantity (Dollars per pencil) (Number of pencils) (Dollars per orange) (Number of oranges) Year 2016 125 1 200 2017 2 170 230 2018 4 150 4 170 Use the information from the preceding table to fill in the following table. Real GDP Nominal GDP (Dollars) (Base year 2016, dollars) GDP Deflator Year 2016 2017 2018 From 2017 to 2018, nominal GDP , and real GDP The inflation rate in 2018 was Why is real GDP a more accurate measure of an economy's production than nominal GDP? 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. Real GDP does not include the value of intermediate goods and services, but nominal GDP does. Real GDP is not influenced by price changes, but nominal GDP is.
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Consider a simple economy that produces two goods: apples and envelopes. The following table shows the prices and quantities of the goods over a three-year period. Year Apples Envelopes Price Quantity Price Quantity (Dollars per apple) (Number of apples) (Dollars per envelope) (Number of envelopes) 2016 2 115 5 175 2017 4 150 2 180 2018 1 100 2 160 Use the information from the preceding table to fill in the following table. Year Nominal GDP (Dollars) Real GDP (Base year 2016, dollars) GDP Deflator 2016 2017 2018 From 2017 to 2018, nominal GDP: (a. increased, b. decreased), and real GDP (a. increased, b. decreased) . The inflation rate in 2018 was: (a. -47.5%, b. -0.5%, c. 47.5%, d. 52.5%, e. 190.5%) . Why is real GDP a more accurate measure of an economy's production than nominal GDP? a. Real GDP includes the value of exports, but nominal GDP does not.…
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…
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