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If nominal GDP is 42,000 and real GDP is 40,000 what is the GDP deflator?
A.) 1.05
B.) 200
C.) 105
D.) 112.5
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- Gross domestic product (GDP) is defined as the: A. value of all final goods and services produced in a country during a period of time B. value of all final goods produced by a country’s resources that are in foreign countries during a period of time. C. value of all final goods that can be produced in a country by utilizing all resources during a period of time. D. value of the income earned by the owners of resources in a country during a period of time E. value of all intermediate goods and services produced in a country during a period of timeI. Based on the data in Table 2 below, calculate Indonesia's 2011-2016 by measuring changes in the GDP Deflator. Table 2.Indonesia's Gross Domestic Product 2011-2016 year Product Domestik Bruto (Miliar Rp.) Nominal IHK (%) Deflator 2010 6,864,133.1 6.96 100.0 2011 7,831,726.0 3.79 107.5 2012 8,615,704.5 4.30 111.5 2013 9,546,134.0 8.38 117.0 2014 10,569,705.3 8.36 123.4 2015 11,531,716.9 3.35 128.4 2016 12,406,809.8 3.02 131.51. A simple economy produces three commodities: beer, cheese, and popcorn. The following data shows total production for this economy in 1999 and 2000: Beer Cheese Popcorn 1999 2000 1999 Quantity 200 300 100 1999 2000 Using 1999 as the base year, complete the following table for the economy: Nominal GDP (a) (b) Nominal GDP Real GDP 10,000 (1) (c) (d) 1999 Price $ 6.00 7.00 7.00 Real GDP (2) (3) GDP Price Index (e) (f) 2000 Quantity 200 300 100 Inflation Growth rate of rate nominal GDP 2. Complete the following table for a simple economy, assuming that 1999 is the base year: GDP Price (g) Index (4) (5) Inflation rate 2000 Price $7.00 9.00 9.00 --- (h) 5% Growth rate of real GDP Growth rate of nominal GDP (6) (i) Growth rate of real GDP 5%
- Why do we exclude intermediate goods from the calculation of GDP? A.) Intermediate goods do not add value B.) Intermediate goods are not market priced C.) Because intermediate goods are used by producers not consumers D.) To avoid double countingFor a nominal GDP of 33,000 and GDP deflator of 110, calculate real GDP. A.) 30,000 B.) 272.72 C.) 33,000 D.) Can not be determined4. Which of the following transactions will be counted in the GDP a) Purchase of a used car. b) Income gained by an American citizen from a company he owns but which operates in Italy. c) Sale of a share of General Motors on the stock market. d) Your production of "home-made" bread for your family's use. e) The production of steel for use in automobile production, that remained in inventory at year's end. f) The sale of steel used in automobile production. g) You fix your neighbor's car in exchange for his helping you with your plumbing, but neither of you reports income to the IRS. h) You fix your neighbor's car in exchange for his helping you with your plumbing, and you report the value of these services to the IRS as income. i) Services of a prostitute in a jurisdiction where prostitution is illegal
- Table 1: Items for GDP Calculation Item Billions of Dollars 250 Government expenditure on goods and services Compensation of employees 1,675 325 Gross private domestic investment Rental income 20 1425 Personal consumption expenditures Net interest 40 Net exports of goods and services 100 Indirect business taxes and depreciation 300 1. The table 1 above shows some (but not all) national income accounting data for a hypothetical country. According to these data, the value of GDP is billion. a) £2100 b) £2050 c) £1850 d) £2000 2. When a worker quits a job to look for a better job, a) frictional unemployment increases. b) structural unemployment decreases. c) structural and cyclical unemployment increase. cyclical unemployment increases. d) Student ID number: X W 0 Labor (billions of hours per year) 3. Based on the above figure, the country of Kemper is on its aggregate production function at point W. The government of Kemper passes a law that makes 4 years of college mandatory for all…If the Citrus Growers Association grows $1 million worth of oranges, sells $500,000worth of oranges to consumers, uses the rest to make orange juice that is sold toconsumers for $3 million.a. What is the Citrus Growers Contribution to GDP ?b. What is the total GDP contribution of the entire production process?67. GDP is defined as the market value of all final goods and services produced within a country in a given period of time. In spite of this definition, some production is left out of GDP. Explain why some final goods and services are not included.
- QUESTION 1 What is the percent change between the 28 years from 1991 to 2019 for GDP (constant 2010 US$)? 96% 103% 130%a. Below is the national income data of a country in a year 2021. Calculate the: ITEMS Private expenditure Mining and quarrying Finance and insurance Manufacturing Transportation Hotel and restaurant Agriculture, forestry and fishing Communication Dividends received by individuals Capital consumption Indirect taxes Net factor income received from abroad Subsidies Transfer payments i. Gross Domestic Product at market price. ii. Gross Domestic Product at factor cost. iii. Gross National Product at factor cost. iv. National Income. RM (Million) 2000 800 950 2500 4000 1260 2280 740 130 200 1500 690 89 140 - insurance.1. Consider an economy that produces and consumes bread and cars. The data for two differentyears are as follows:Year 2000 Year 2010Goods Quantity Price Quantity PriceCars 100 $ 50,000 120 $ 60,000Bread 500,000 $ 10 400,000 $ 20 a) Use the year 2000 as the base year, compute the Nominal GDP for each year (both 2000 and2010). b) Use the year 2000 as the base year, compute the Real GDP for each year (both 2000 and2010) c) Compute the implicit price deflator in year 2010 and use it to explain how the price level haschanged from year 2000 to 2010. (Note: implicit price deflator = GDP Deflator). 2. Consider a Cobb-Douglas production function with three inputs. K is capital (the number ofmachines), L is labor (the number of workers), and H is human capital (the number of collegedegrees among the workers) . The production function is
