5. Real versus nominal GDPConsider a simple economy that produces two goods: stickers and seltzers. The following table shows the prices and quantities of the goods over athree-year period.PriceYear (Dollars per sticker)20202202122022StickersYear202020212022From 2021 to 2022, nominal GDPThe inflation rate in 2022 wasQuantity(Number of stickers)295Use the information from the preceding table to fill in the following table.Nominal GDPReal GDP(Dollars)(Base year 2020, dollars) GDP Deflator140145and real GDPSeltzersPrice(Dollars per seltzer)244Why is real GDP a more accurate measure of an economy's production than nominal GDP?-Quantity(Number of seltzers)180210160 Why is real GDP a more accurate measure of an economy's production than nominal GDP?Real GDP is not influenced by price changes, but nominal GDP is.Real GDP does not include the value of intermediate goods and services, but nominal GDP does.Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods andservices an economy consumes.

Nominal GDP measures the value of goods and goods and services produced in the economy at current…

Consider a simple economy that produces two goods: stickers and seltzers. The following table shows the prices and quantities of the goods over a three-year period. Price Year (Dollars per sticker) 2020 2 2021 2 2022 Stickers Year 2020 2021 2022 Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP (Dollars) (Base year 2020, dollars) GDP Deflator From 2021 to 2022, nominal GDP The inflation rate in 2022 was Quantity (Number of stickers) 295 140 145 and real GDP Price (Dollars per seltzer) 2 Seltzers 4 4 Why is real GDP a more accurate measure of an economy's production than nominal GDP?- Quantity (Number of seltzers) 180 210 160

Consider a simple economy that produces two goods: stickers and seltzers. The following table shows the prices and quantities of the goods over a three-year period. Price Year (Dollars per sticker) 2020 2 2021 2 2022 Stickers Year 2020 2021 2022 Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP (Dollars) (Base year 2020, dollars) GDP Deflator From 2021 to 2022, nominal GDP The inflation rate in 2022 was Quantity (Number of stickers) 295 140 145 and real GDP Price (Dollars per seltzer) 2 Seltzers 4 4 Why is real GDP a more accurate measure of an economy's production than nominal GDP?- Quantity (Number of seltzers) 180 210 160

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

The economy of Tuland produces only two products fish and watches. The following information is available for production and prices of Tuland's products for the years 2009 and 2010. 2010 132 2009 Quantity of fish 120 Quantity of watches Price of fish Price of watches 100 130 $8.00 $30.00 $9.20 $31.50 Using the above information, calculate the following values. (Enter your responses rounded to two decimal places.) GDP for 2009 in 2009's prices GDP for 2009 in 2010's prices GDP for 2010 in 2009's prices GDP for 2010 in 2010's prices Using 2009 as the base year, compute the percentage change in the price level, i.e. the inflation rate. hint: you need to compute the GDP deflator first. % % % Using 2010 as the base year, compute the percentage change in the price level, i.e. the inflation rate. hint: you need to compute the GDP deflator first. The geometric average of the two inflation rates
The table contains price and quantity information for two vehicle models produced by Ford Motor Company, the F-series trucks and Escape SUVs. 2016 2016 2017 2017 price quantity price quantity ford escapes $24,485 307,069 $24,645 308,296 ford trucks $44,400 820,799 $24,645 896,764 a. Calculate the amount contributed by Ford to U.S. GDP (real and nominal) from the sales of the two models in 2016 and 2017. b. Determine the growth rate of nominal GDP (if Ford were the entire economy). c. Determine the growth rate of real GDP (if Ford were the entire economy).
The economy of Tuland produces only two products fish and watches. The following information is available for production and prices of Tuland's products for the years 2009 and 2010. 2010 132 69 2009 120 Quantity of fish Quantity of watches Price of fish 60 $8.00 $9.20 Price of watches $30.00 $31.50 Using the above information, calculate the following values. (Enter your responses rounded to two decimal places.) GDP for 2009 in 2009's prices GDP for 2009 in 2010's prices GDP for 2010 in 2009's prices GDP for 2010 in 2010's prices Using 2009 as the base year, compute the percentage change in the price level, i.e. the inflation rate. hint: you need to compute the GDP deflator first. Using 2010 as the base year, compute the percentage change in the price level, i.e. the inflation rate. hint: you need to compute the GDP deflator first. The geometric average of the two inflation rates $ 69 % % %
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. Stickers Donuts Price Quantity Price Year (Dollars per sticker) (Number of stickers) (Dollars per donut) Quantity (Number of donuts) 2019 2 215 3 155 2020 st 4 135 3 210 2021 2 150 3 190 Use the information from the preceding table to fill in the following table. Nominal GDP (Dollars) Real GDP (Base year 2019, dollars) GDP Deflator Year 2019 2020 2021 From 2020 to 2021, nominal GDP and real GDP ' The inflation rate in 2021 was Why is real GDP a more accurate measure of an economy's production than nominal GDP? Real GDP does not include the value of intermediate goods and services, but nominal GDP does. Real GDP includes the value of exports, but nominal GDP does not. Real GDP is not influenced by price changes, but nominal GDP is.
The table shows the quantities produced and prices in 2015 and 2016 for an island. economy which produces only bananas and coconuts. The base year is 2016. Calculate real GDP in 2015 and 2016 using the chained-dollar method. In terms of what dollars is each of these two real GDPS measured? Real GDP in 2016 using the chained-dollar method is $ Real GDP in 2015 using the chained-dollar method is $ >>> Answer with a whole number Real GDP in 2015 and real GDP in 2016 are measured in ▼ dollars In 2015 Item Bananas Coconuts In 2016 Item Bananas Coconuts Quantity 99 bunches 53 bags Quantity 114 bunches. 66 bags. Price $10 a bunch $9 a bag Price $11 a bunch $10 a bag
Page 551 7. The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP. Indicate in each calculation whether you are inflating or deflating the nominal GDP data. Nominal GDP, Price Index Real GDP, Year Billions (2005 = 100) Billions 1968 $ 909.8 22.01 1978 2,293.8 40.40 $. 1988 5,100.4 66.98 1998 8,793.5 85.51 2008 14,441.4 108.48
The Table shows the GDP deflator for the year 2019 and nominal GDP of Fairyland for the years 2019 and 2020. You are told that prices in Fairyland rose by 5% in 2020 Calculate the percentage increase in Real GDP in 2020. Year GDP deflator Nominal GDP 2019 120 $240000 2020 Not given $277200 According to the U.S. Bureau of Labour Statistics a bread cost $5 in the year 1997 and cost $10.26 in 2022. Imagine your salary was $100 in 1997 and $250 in 2022. How much % has your real salary grown in terms of bread?
Consider a simple economy that produces two goods: pens and mumins. The following table shows the prices and quantities of the gonds over a three- year period. Pens Muffins Price Quantity Price Quantity Year (Dollars per pen) (Number of pens) (Dollars per muffin) (Number of nmuffins) 2018 125 155 2019 135 3. 210 2020 125 165 Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP Year (Dollars) (Base year 2018, dollars) GDP Deflator 2018 2019 2020 From 2019 to 2020, nominal GDP and real GDP The inflation rate in 2020 was Why is real GDP a more accurate measure of an economy's production than nominal GDP? Real GDP does not include the value of intermediate goods and services, but nominal GDP does. O Real GDP is not influenced by price changes, but nominal GDP is. O Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not.
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
Consider a simple economy that produces two goods: pencils and envelopes. The following table shows the prices and quantities of the goods over a three-year period. Price Year (Dollars per pencil) 2016 2 2017 4 2018 2 Year 2016 2017 2018 Pencils Use the information from the preceding table to fill in the following table. From 2017 to 2018, nominal GDP Quantity (Number of pencils) 125 135 125 The inflation rate in 2018 was Nominal GDP Real GDP (Dollars) (Base year 2016, dollars) GDP Deflator Price (Dollars per envelope) 3 3 3 and real GDP Envelopes Why is real GDP a more accurate measure of an economy's production than nominal GDP? Quantity (Number of envelopes) 155 O Real GDP includes the value of exports, but nominal GDP does not. Real GDP is not influenced by price changes, but nominal GDP is. Real GDP does not include the value of intermediate goods and services, but nominal GDP does. 210 165