Consider the data shown in the table. Assume that the economy produces only textbooks. What is the growth rate of realGDP between the two years using last year as the base year?|Textbooks ActualPriceSoldLast yearThis year5,000$505,250$5510%5%O 2.5%15%

‘Real GDP’ is a macroeconomic factor which is calculated to get the value of economic output…

Answered: Consider the data shown in the table.…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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come is included 13. LAST WORD Assume that you borrow $5,000, and you pay back the $5,000 plus $250 in interest at the end of the year. Assuming no inflation, what is the real interest rate? What would the interest rate be if the $250 of interest had been dis- counted at the time the loan was made? What would the inter- est rate be if you were required to repay the loan in 12 equal monthly installments?
If real GDP per capita in the United States is $5,000, what will real GDP per capita in the United States be after 3 years if real GDP per capita grows at an annual rate of 2%? O $4,520 O 55,000 $5,306 O $5,560
On the following scatter plots, the 1960 real per capita GDP is on the x-axis and the y-axis represents the average economic growth rate between 1960 and 2017. Which one shows the strongest evidence in favour of convergence? O 2.5 1960-2017 growth (percent) 2.0 1.5 1.0 3 2 5 5 Convergence 10 1960 GDP (constant dollars per person) Convergence 15 10 15 1960 GDP (constant dollars per person) 20 20
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QUESTION 13 A nation's real GDP was $250 billion last year and $265 billion this year. Its population was 122 million last year and 125 million this year. What is the growth rate of real GDP per capita in this year? O a. 1.1 percent O b. 2.5 percent Oc.5.0 percent O d. 3.4 percent
Labor productivity can best be defined as the ratio of workers in the economy to the population. the ratio of the change in the output of goods and services to the change in the labor hours used. the ratio of the number of workers available to the amount of capital available. the ratio of output of goods and services to the labor hours devoted to that output. Based on the graph, how is the relationship between labor productivity and real GDP per capita best described? O positive O negative infinite unrelated
Using the table, what is the real GDP growth from 2001 to 2002? O 50% YEAR O 1.25% 2001 2002 O-11.11% QUANTITY APPLES 100 150 BANANAS APPLES 40 $0.50 60 $1.00 PRICES BANANAS $2.50 $1.00
1. LO 2 In the Malthusian model, suppose that the quantity of land increases. Using diagrams, deter- mine what effects this has in the long-run steady state and explain your results.
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5 Question This question is supposed to familiarize you with the calculation of growth over multiple periods. In the lectures you learned that the growth rate of a variable from one period to the next is given by Yt - Yt-1 9y= Yt-1 where g, denotes the growth rate, y, the value of the variable y in period t, and yt-1 the value of the same variable in period t- 1. Very often we are dealing with growth over many periods, say 50 years, in which case the above formula is not helpful. In that case we use the following formula: Yt = Yo (1+9y), where yo is the value of the variable at the beginning of the period, y, is the value of the variable after t periods, and g, is the (constant) growth rate. Depending on what information is given, you can solve the formula for either yt, Yo, gy, or for t. Now turn to the actual problem: The poorest countries in the world currently have an annual per capita income of about $600. We can reasonably assume that it is nearly impossible to live on an income…
The output produced in bushels and the prices of this output ($/bushel) over the last three years for Seth Johnson, a farmer in Amarillo, Texas, are as follows: Year Output (bushels) Price ($/bushel) 2010 70,000 $3.20 2011 75,000 $2.90 2012 80,000 $3.50 Let the base year be 2011. What is the price index for 2012? Select one: O a. 1.094 O b. 0.829 O c. 1.207 O d. 0.914 e

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Consider the data shown in the table. Assume that the economy produces only textbooks. What is the growth rate of real GDP between the two years using last year as the base year? |Textbooks Actual Price Sold Last year This year 5,000 $50 5,250 $55 10% 5% O 2.5% 15%