Hamburgers Price in 1993 = $1.00 Quantity produced in 1993 = 100 Quantity produced in 1994 = 75 Price in 1994 = $2.00 %3D What is nominal GDP (Pc x Qc) for 1993 and 1994? 1993: 100*1= $100 1994: 75*23 $150 What is real GDP in 1993 and 1994 if 1993 is our base year? (Pb x Qc) Real GDP of 1993 is= 100*1= $100 Real GDP in 1994 is= 75*1= $75 What is the deflator in 1993 and 1994 (deflator = nominal/real) GDP deflator of 1993= 100/100*100= 100% GDP deflator of 1994= 150/75*100= 200% What is the inflation rate in our hamburger economy? (% change in deflator) Calculate inflation rate if the deflator is 135 in 1995 and 140 in 1996.
Hamburgers Price in 1993 = $1.00 Quantity produced in 1993 = 100 Quantity produced in 1994 = 75 Price in 1994 = $2.00 %3D What is nominal GDP (Pc x Qc) for 1993 and 1994? 1993: 100*1= $100 1994: 75*23 $150 What is real GDP in 1993 and 1994 if 1993 is our base year? (Pb x Qc) Real GDP of 1993 is= 100*1= $100 Real GDP in 1994 is= 75*1= $75 What is the deflator in 1993 and 1994 (deflator = nominal/real) GDP deflator of 1993= 100/100*100= 100% GDP deflator of 1994= 150/75*100= 200% What is the inflation rate in our hamburger economy? (% change in deflator) Calculate inflation rate if the deflator is 135 in 1995 and 140 in 1996.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Hi, can someone help me with the last two questions, please?
thank you.
Transcribed Image Text:Hamburgers
Price in 1993 = $1.00
Quantity produced in 1993 = 100
Quantity produced in 1994 = 75
Price in 1994 = $2.00
%3D
What is nominal GDP (Pc x Qc) for 1993 and 1994?
1993:
100*1= $100
1994:
75*23 $150
What is real GDP in 1993 and 1994 if 1993 is our base year? (Pb x Qc)
Real GDP of 1993 is= 100*1= $100
Real GDP in 1994 is= 75*1= $75
What is the deflator in 1993 and 1994 (deflator = nominal/real)
GDP deflator of 1993= 100/100*100= 100%
GDP deflator of 1994= 150/75*100= 200%
What is the inflation rate in our hamburger economy? (% change in deflator)
Calculate inflation rate if the deflator is 135 in 1995 and 140 in 1996.
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