PriceQuantityYear (Dollars per sticker) (Number of stickers)202032102021215020223125Year20202021Use the information from the preceding table to fill in the following table.2022StickersFrom 2021 to 2022, nominal GDPNominal GDPReal GDP(Dollars) (Base year 2020, dollars) GDP DeflatorThe inflation rate in 2022 wasPrice(Dollars per paper plate)and real GDP44Paper plates4Why is real GDP a more accurate measure of an economy's production than nominal GDP?Quantity(Number of paper plates)180Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not.O Real GDP is not influenced by price changes, but nominal GDP is.O Real GDP includes the value of exports, but nominal GDP does not.200180

GDP deflator shows the ratio of prices of all products and services produced domestically in 2…

Price Quantity Year (Dollars per sticker) (Number of stickers) 2020 3 210 2021 2 150 2022 3 125 Year 2020 Use the information from the preceding table to fill in the following table. 2021 2022 Stickers From 2021 to 2022, nominal GDP Nominal GDP Real GDP (Dollars) (Base year 2020, dollars) GDP Deflator The inflation rate in 2022 was Price Quantity (Dollars per paper plate) (Number of paper plates) 180 200 180 and real GDP 4 Paper plates 4 4 Why is real GDP a more accurate measure of an economy's production than nominal GDP? O Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not. O Real GDP is not influenced by price changes, but nominal GDP is. O Real GDP includes the value of exports, but nominal GDP does not.

Price Quantity Year (Dollars per sticker) (Number of stickers) 2020 3 210 2021 2 150 2022 3 125 Year 2020 Use the information from the preceding table to fill in the following table. 2021 2022 Stickers From 2021 to 2022, nominal GDP Nominal GDP Real GDP (Dollars) (Base year 2020, dollars) GDP Deflator The inflation rate in 2022 was Price Quantity (Dollars per paper plate) (Number of paper plates) 180 200 180 and real GDP 4 Paper plates 4 4 Why is real GDP a more accurate measure of an economy's production than nominal GDP? O Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not. O Real GDP is not influenced by price changes, but nominal GDP is. O Real GDP includes the value of exports, but nominal GDP does not.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An inflation rate of 2% in the USA (calculated using the Consumer Price Index) means that: both domestic and foreign products consumed in the USA have become more expensive by 2% compared to last year. b. only domestic products consumed in the USA have become more expensive by 2% compared to last year. only domestic products consumed in the USA have become more expensive by 2% compared to the base year. d. the GDP of the economy is growing at 2%.
Using the data in the table below, calculate the CPI and the inflation rate in each year, using 2013 as a base year. Instructions: Round your answers to one decimal place. Year Cost of Basket ($) CPI Inflation Rate 2013 18,000 2014 21,500 2015 22,500 2016 26,150 2017 28,850 2018 32,500
A hypothetical country of Narnia produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown in the following table. The base year is 2017. Year 2016 2017 2018 2019 Price (Dollars per movie) 7.6% 7.5% Movies 7.2% 7% 10.00 11.00 12.00 12.00 Quantity Quantity (Movies) (Dollars per bag) (Bags) 500 600 650 625 Popcorn Refer to Table 23-5. What was the rate of inflation for Narnia in 2019? (Hint: round-off to the nearest decimal point) Price 5 4 5 6 1,000 900 950 925
The following table shows the typical market basket consumed in an economy as well as data on price for years 2001 to 2003. Use this table to calculate the inflation rate between 2001 and 2002. 2003 is the base year. Price in year Price in year Price in Year Items Quantities 2001 2002 2003 Pizza $10 $20 $0.50 $12 $25 $0.55 $11 $26 $1 10 T-shirts 10 Candy 100
Notebooks Calculators Large coffees Energy drinks Textbooks Total cost Price index Quantity in Basket 10 1 300 75 8 Price Cost (Dollars) (Dollars) 3 30 75 75 600 150 720 NN 90 Suppose the base year for this price index is 2017. Between 2017 and 2018, the CSPI increased by 2017 1,575 100 Price (Dollars) 3 80 2 4 110 2018 Cost (Dollars) In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Price (Dollars) 4 104 2 5 120 % Between 2018 and 2019, the CSPI increased by 2019 Cost (Dollars) % Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply. A new type of personal transporter, which made it easier to get around places like university campuses, became available for purchase. Professors required each student to buy 10 notebooks, regardless of the price. As the price of energy drinks increased relative to the price of coffee between 2017…
Now you see what the BLS economist do, except with a more complex basket of goods. Now try to construct an index and determine the inflation rate on your own. The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is the amount spent each year on the “basket” of fruit with the quantities shown in column 2? (5 points) Items Qty. 2001 2002 2003 2004 Price Amount Spent Price Amount Spent Price Amount Spent Price Amount Spent Apples 10 $0.50 $0.75 $0.85 $0.88 Bananas 12 $0.20 $0.25 $0.25 $0.29 Grapes 2 $0.65 $0.70 $0.90 $0.95 Raspberries 1 $2.00 1.9 2.05 2.13 $2.13 Total Construct the price index for a “fruit basket” in each year using 2003 as the base year. (5 points) Compute the inflation rate…
2. The inflation-unemployment relationship The following graph shows the combinations of unemployment and inflation that existed in the United States for selected years between 1961 and 1969. Click on any blue point (circle symbol) on the graph to get its exact coordinates. You can also use the black point (cross symbol) to find the coordinates of other points along the curve. (Note: You will not be graded for any adjustments made to the graph.) INFLATION RATE (Percent) 1989 5.0 4.5 1988 4.0 3.5 1967 3:0 2.5 2.0 1965 1964 1.5 1983 1961 1.0 0.5 0 3.0 3.5 40 45 5.0 5.5 6.0 8.5 7.0 UNEMPLOYMENT RATE (Percent) What happened to the inflation rate between 1965 and 1969? The inflation rate decreased from 1.9% to 1.5%. The inflation rate increased by 3 percentage points. The inflation rate decreased by 2 percentage points. O The inflation rate increased from 2.9% to 4.3%. ? If the unemployment rate had been 4.0% during the 1960s, the inflation rate would most likely have been:
Question 2 Part (a) Refer to the table below for a very simple economy producing three goods: education, pizzas and cars. Steel panels are needed for car production, cheese is necessary for making pizzas and projectors are used for educational service. Product Steel panels Education Cars Cheese Pizzas Projectors Quantity 40 400 400 2500 2500 4000 2017 Price $5000 $1000 $10000 $1.50 $9.00 $2000 Quantity 50 450 500 3500 3500 5000 2022 Price $6000 $1100 $12000 $1.50 $12.00 $3000 What is the nominal GDP for the economy in 2022? What was the nominal GDP in 2017? What is the real GDP in 2022 using 2017 prices as base year prices? What is the overall real GDP growth rate between 2022 and 2017? Part (b) Assume for an economy, there are 11.5 million people employed, unemployment rate is 5.2%, labor force participation rate is 64%, number of defence force personnel
Use the information from the preceding table to fill in the following table. Year Nominal GDP Real GDP GDP Deflator 2018 410 410 100 2019 1170 585 200 2020 1080 480 225 From 2019 to 2020, nominal GDP (increase or decrease) , and real GDP (increase or decrease) . The inflation rate in 2020 was (-12.5%, 0.1%, 12.5%, 88.9%, 112.5%) .
10. Index numbers - An application The index of industrial production (IIP) is a measure of production across a broad range of industries. Suppose 1987 is the base period. Year Index of Industrial Production 1987 100 1992 117 The base value is The IIP in 1992 implies that industrial production Suppose you'd like to change the base year from 1987 to 1982, when the value of the IIP was 80. After changing the base year to 1982, the IIP in 1992 becomes 10. Index numbers - An application The index of industrial production (IIP) is a measure of production across a broad range of industries. Suppose 1987 is the base period. Year Index of Industrial Production 1987 100 1992 117 The base value is The IIP in 1992 implies that industrial production Suppose you'd like to change the base year from 1987 to 1982, when the value of After changing the base year to 1982, the IIP in 1992 becomes increased decreased by about by about %- %.
The average price of tuition and fees at private 4-year colleges and universities increased from $8,300 in 1991 to $23,000 in 2006. Calculate the relative change in price from 1991 to 2006 and compare it to the overall rate of inflation as measured by the Consumer Price Index. Average tuition and fees in private 4-year colleges and universities increased by ■%. (Round to the nearest integer as needed.) Average Annual Consumer Price Index (CPI) (1982- 1984=100) Year CPI Year CPI Year CPI 1976 56.9 1989 124.0 2001 177.1 1977 60.6 1990 130.7 2002 179.9 1978 65.2 1991 136.2 2003 184.0 1979 72.6 1992 140.3 2004 188.9 1980 82.4 1993 144.5 2005 1981 90.9 1994 148.2 2006 1982 96.5 1995 152.4 2007 1983 99.6 1996 156.9 1984 103.9 1997 160.5 2009 1985 107.6 1998 163.0 2010 109.6 1999 166.6 2011 1986 1987 113.6 2000 172.2 2012 1988 118.3 195.3 201.6 207.3 2008 215.3 214.5 218.1 224.9 229.6
5 eBook The table below lists the CPI values for the United States from different decades. a. Complete the table by computing the annual inflation rate. Instructions: Round your answers to two decimal places. If entering a negative number include a minus sign. CPI Values and Inflation Year 1931 1932 1933 1946 1947 1948 1978 1979 1980 2001 2002 2003 CPI 15.8 14.0 13.3 20.1 23.2 24.7 67.8 74.7 85.4 181.9 183.6 191.4 Inflation Rate (percent) % Instructions: Enter the year using all four numbers (yyyy). b. Using the table above, indicate the year the economy experienced: The highest annual inflation rate: The largest annual negative inflation (deflation) rate: [ The most stable price level (annual inflation rate closest to zero): [