(a) Suppose the information in the following table is for a simple economy that producesonly four goods and services: shoes, hamburgers, shirts, and cotton. Assume that 70%of cotton is used in the production of shirts.20122022QuantityQuantity907550100ProductShoesHamburgersShirtsCottonPrice$50$2$30$0.8010010050800Price$60$2$25$0.602023Quantity10012065120(iii) Calculate the GDP deflator for 2022 and 2023.(iv) Calculate the economic growth rate for 2023.Price$65$2.25$25$0.70(i) Calculate the nominal GDP for 2022 and 2023.(ii) Calculate the real GDP for 2022 and 2023 (assume the base year is 2012).

Gross Domestic Product (GDP) measures the money value of all final goods and services produced in an…

only four goods and services: shoes, hamburgers, shirts, and cotton. Assume that 70% of cotton is used in the production of shirts. 2012 2022 Quantity 100 100 50 800 Product Shoes Hamburgers Shirts Cotton Quantity Price $50 $2 $30 $0.80 90 75 50 100 Price $60 $2 $25 $0.60 2023 Quantity 100 120 65 120 Price $65 $2.25 $25 $0.70 (i) Calculate the nominal GDP for 2022 and 2023. (ii) Calculate the real GDP for 2022 and 2023 (assume the base year is 2012). (iii) Calculate the GDP deflator for 2022 and 2023.

only four goods and services: shoes, hamburgers, shirts, and cotton. Assume that 70% of cotton is used in the production of shirts. 2012 2022 Quantity 100 100 50 800 Product Shoes Hamburgers Shirts Cotton Quantity Price $50 $2 $30 $0.80 90 75 50 100 Price $60 $2 $25 $0.60 2023 Quantity 100 120 65 120 Price $65 $2.25 $25 $0.70 (i) Calculate the nominal GDP for 2022 and 2023. (ii) Calculate the real GDP for 2022 and 2023 (assume the base year is 2012). (iii) Calculate the GDP deflator for 2022 and 2023.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Problem 1QTC

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Question

100%

(a) Suppose the information in the following table is for a simple economy that produces
only four goods and services: shoes, hamburgers, shirts, and cotton. Assume that 70%
of cotton is used in the production of shirts.
2012
2022
Quantity
Quantity
90
75
50
100
Product
Shoes
Hamburgers
Shirts
Cotton
Price
$50
$2
$30
$0.80
100
100
50
800
Price
$60
$2
$25
$0.60
2023
Quantity
100
120
65
120
(iii) Calculate the GDP deflator for 2022 and 2023.
(iv) Calculate the economic growth rate for 2023.
Price
$65
$2.25
$25
$0.70
(i) Calculate the nominal GDP for 2022 and 2023.
(ii) Calculate the real GDP for 2022 and 2023 (assume the base year is 2012).

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Step 2: 1. Calculate the nominal GDP for 2022 and 2023

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Step 3: 2. Calculate the real GDP for 2022 and 2023

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