Department of statistics of MacroLand computed the following. Assume these 3 goods are the only ones produced/consumed in MacroLand. 2014 Price $4 $3 Vegetables $5 Product Rice Meat Quantity 500 400 200 7- 2015 Price $5 $5 $6 Quantity 550 420 250 2016 Price $7 $6 $8 Quantity 600 450 280 a) Calculate the nominal GDP and the real GDP for MacroLand in 2014, 2015 and 2016, taking 2014 as the base year b) Compute the nominal GDP and the real GDP growth rate for MacroLand in 2015 and 2016. c) Using 2014 as the base year, compute the CPI for 2015 and 2016. Use the CPI to compute the inflation rate between 2014 and 2015, and also between 2015 and 2016.

Department of statistics of MacroLand computed the following. Assume these 3 goods are the only ones produced/consumed in MacroLand. 2014 Price $4 $3 Vegetables $5 Product Rice Meat Quantity 500 400 200 7- 2015 Price $5 $5 $6 Quantity 550 420 250 2016 Price $7 $6 $8 Quantity 600 450 280 a) Calculate the nominal GDP and the real GDP for MacroLand in 2014, 2015 and 2016, taking 2014 as the base year b) Compute the nominal GDP and the real GDP growth rate for MacroLand in 2015 and 2016. c) Using 2014 as the base year, compute the CPI for 2015 and 2016. Use the CPI to compute the inflation rate between 2014 and 2015, and also between 2015 and 2016.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Note:Hand written solution not allowed.

Department of statistics of MacroLand computed the following. Assume these 3 goods are the
only ones produced/consumed in MacroLand.
2014
Price
Product
Rice
Meat
$4
$3
Vegetables $5
Quantity
500
400
200
2015
Price
1
$5
$5
$6
Quantity
550
420
250
2016
Price
$7
$6
$8
Quantity
600
450
280
a) Calculate the nominal GDP and the real GDP for MacroLand in 2014, 2015 and 2016, taking
2014 as the base year
b) Compute the nominal GDP and the real GDP growth rate for MacroLand in 2015 and 2016.
c) Using 2014 as the base year, compute the CPI for 2015 and 2016. Use the CPI to compute the
inflation rate between 2014 and 2015, and also between 2015 and 2016. (

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