Price Quantity 88 boxes Goods/Services Play-Doh Towels Haircuts Hats Quantity 80 boxes Price Price Quantity 91 boxes $8.99/box 75 47 21 $8.49/box $8.50 each $31.50 each 42 $14.99 each 35 $6.99/box $8.90 each $37.50 each $15.99 each $8.25 each 85 80 $28.50 each 43 $14.99 each 25 Notice that everything produced is consumption goods and services. Take 2010 as a base year. Round all the answers to 2 decimals. 1. Calculate the nominal GDP in 2009. 2. Calculate the nominal GDP in 2010. 3. Calculate the nominal GDP in 2011. 4. Calculate the real GDP in 2009. 5. Calculate the real GDP in 2010. 6. Calculate the real GDP in 2011. 7. Calculate the GDP Deflator for 2009. 8. Calculate the GDP Deflator for 2010.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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only subparts 7 and 8

Let us say we have a record of consumption and prices in a (very) small closed (no trade) economy:
2009
Quantity
80 boxes
2010
Quantity
88 boxes
2011
Goods/Services
Price
Price
Quantity
91 boxes
Price
Play-Doh
Towels
Haircuts
Hats
$8.99/box
$8.49/box
$6.99/box
$8.90 each
$37.50 each
$15.99 each
$8.50 each
$8.25 each
$28.50 each 43
$14.99 each 25
75
85
80
$31.50 each 42
$14.99 each 35
47
21
Notice that everything produced is consumption goods and services. Take 2010 as a base year. Round all
the answers to 2 decimals.
1. Calculate the nominal GDP in 2009.
2. Calculate the nominal GDP in 2010.
3. Calculate the nominal GDP in 2011.
4. Calculate the real GDP in 2009.
5. Calculate the real GDP in 2010.
6. Calculate the real GDP in 2011.
7. Calculate the GDP Deflator for 2009.
8. Calculate the GDP Deflator for 2010.
9. Calculate the GDP Deflator for 2011.
10. Calculate the GDP Deflator-based inflation rate from 2009 to 2010.
11. Calculate the GDP Deflator-based inflation rate from 2010 to 2011.
Transcribed Image Text:Let us say we have a record of consumption and prices in a (very) small closed (no trade) economy: 2009 Quantity 80 boxes 2010 Quantity 88 boxes 2011 Goods/Services Price Price Quantity 91 boxes Price Play-Doh Towels Haircuts Hats $8.99/box $8.49/box $6.99/box $8.90 each $37.50 each $15.99 each $8.50 each $8.25 each $28.50 each 43 $14.99 each 25 75 85 80 $31.50 each 42 $14.99 each 35 47 21 Notice that everything produced is consumption goods and services. Take 2010 as a base year. Round all the answers to 2 decimals. 1. Calculate the nominal GDP in 2009. 2. Calculate the nominal GDP in 2010. 3. Calculate the nominal GDP in 2011. 4. Calculate the real GDP in 2009. 5. Calculate the real GDP in 2010. 6. Calculate the real GDP in 2011. 7. Calculate the GDP Deflator for 2009. 8. Calculate the GDP Deflator for 2010. 9. Calculate the GDP Deflator for 2011. 10. Calculate the GDP Deflator-based inflation rate from 2009 to 2010. 11. Calculate the GDP Deflator-based inflation rate from 2010 to 2011.
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