Now, suppose that some goods are not sold. e. Calculate the new real GDP for 2018 (2019 base year) if only 150 hairdryers are sold. f. Calculate the new real GDP 2018 (2019base year) if only 90 hamburgers are sold (hairdryers are back at 200).
Now, suppose that some goods are not sold. e. Calculate the new real GDP for 2018 (2019 base year) if only 150 hairdryers are sold. f. Calculate the new real GDP 2018 (2019base year) if only 90 hamburgers are sold (hairdryers are back at 200).
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter17: Production And Growth
Section: Chapter Questions
Problem 5CQQ
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Need part e and f .thank you
![1. Suppose the US can produce only three goods: hamburgers (a non- durable good), hairdryers (a durable
good) and haircuts (a service). The prices and quantities produced for 2018, 2019 and 2020 are listed
below.
P2018
Q2018
P2019
Q2019
P2020
Q2020
Hamburgers $2.50
100
$3.00
25
$3.25
150
Hairdryers
$10.50
200
$11.75
250
$15.75
200
haircuts
$11
150
$12
150
$14
195
Suppose that all goods are sold.
a. Using 2020 as the base year, calculate the real GDP for 2018, 2019 and 2020.
b. How fast did the real GDP grow between 2018 and 2019?
c. How fast did the real GDP grow between 2019 and 2020?
d. Using 2020 as the base year, calculate the real GDP deflator for 2018, 2019 and 2020.
Now, suppose that some goods are not sold.
e. Calculate the new real GDP for 2018 (2019 base year) if only 150 hairdryers are sold.
f. Calculate the new real GDP 2018 (2019base year) if only 90 hamburgers are sold (hairdryers are back at 200).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F86e7266c-30ad-421e-bd8a-a1ccae580e57%2Faf1d4401-340d-43c8-9de8-0e7fa2552e52%2F4ub5agq_processed.png&w=3840&q=75)
Transcribed Image Text:1. Suppose the US can produce only three goods: hamburgers (a non- durable good), hairdryers (a durable
good) and haircuts (a service). The prices and quantities produced for 2018, 2019 and 2020 are listed
below.
P2018
Q2018
P2019
Q2019
P2020
Q2020
Hamburgers $2.50
100
$3.00
25
$3.25
150
Hairdryers
$10.50
200
$11.75
250
$15.75
200
haircuts
$11
150
$12
150
$14
195
Suppose that all goods are sold.
a. Using 2020 as the base year, calculate the real GDP for 2018, 2019 and 2020.
b. How fast did the real GDP grow between 2018 and 2019?
c. How fast did the real GDP grow between 2019 and 2020?
d. Using 2020 as the base year, calculate the real GDP deflator for 2018, 2019 and 2020.
Now, suppose that some goods are not sold.
e. Calculate the new real GDP for 2018 (2019 base year) if only 150 hairdryers are sold.
f. Calculate the new real GDP 2018 (2019base year) if only 90 hamburgers are sold (hairdryers are back at 200).
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