Problem 12-03 (algo, with video solution)Given below are data on real GDP and potential GDP for the nation of Anaziland for the years 2009-2013, in billions of 2009 currency.For each year, calculate the output gap as a percentage of potential GDP and state whether the gap is a recessionary gap or anexpansionary gap. Also calculate the year-to-year growth rates of real GDP.Instructions: Enter your response as a percentage rounded two decimal places.If you are entering any negative numbers be sure toinclude a negative sign (-) in front of those numbers.cesYear2009Real GDPPotential GDPOutput gapType of gapGrowth rate ofreal GDP13,25013,660%(Click to select) ✓201013,99013,300%(Click to select)201114,45013,400%(Click to select)%201213,88014,060%(Click to select)8201314,08014,500%(Click to select)8Recessionary gap is identified duringO 2009; 2012-2013O 2009-2010; 2013O 2010-2011O 2011-2012

Let's analyze the data for Anaziland's real GDP and potential GDP for the years 2009-2013:Year…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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GRAPH SETTINGS Reset Country-X Initial Value ($50 – $10,000) 1,000.00 Value (thousands of dollars) [Country-X = Country-Y] Growth Rate: 3% 10 9 0.1% 10.0% 8 Country-Y 7 Initial Value 6 ($50 – $10,000) 2,000.00 4 Growth Rate: 1% 3 0.1% 10.0% 2 1 35.4 yrs. E CALCULATIONS 5 10 15 20 25 30 35 40 Years Value in Country-X Country-Y 10 years $1,343.92 $2,209.24 20 years $1,806.11 $2,440.38 30 years $2,427.26 $2,695.70 Country-X Country-Y Instructions: Modify values in the SETTINGS window of the interactive tool to answer the questions below. After each question, click the "Reset" button in the upper-right corner. a) Increase the "Initial Value" setting for Country X. Which of the following describes the changes in the graph? OThe vertical intercept of the purple line rises. OThe vertical intercept of the green line rises. OThe green line starts at the same height but rises faster. OThe purple line starts at the same height but rises faster. b) Using the slider, change the "Growth Rate"…
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(i) What were the main two components of the gain in labor productivity from 1901 to 2016? What was the proportional contribution of each? (ii) How does ‘capital deepening’ occur? (iii) What causes ‘multifactor productivity’ to increase?
4
a) the profit maximizing decisions of an individual manufacturer. b) economic growth. c) the rate of inflation. d) the rate of unemployment. Question 2. When nations desire a healthy macroeconomy, they typically focus on three goals, one of these being: a) low inflation b) balanced budget c) prudent monetary policy d) assuring competition between firms Question 3. If macroeconomics looks at the economy as a whole, it focuses on which of the following? a) the division of labor b) households c) business firms d) unemployed people Question 4. In the ______________, households receive goods and services and pay firms for them. a) goods and services market b) labor market c) financial capital market d) savings market Question 5. Which of the following is included in the calculated Gross Domestic Product? a) Farmer Freddie sells his second tractor to his son. b) Suzanne buys a love seat and chair for $85 at the yard sale on the corner. c) A local ice cream store sells…
Jeff spends all of his money on housing (H) and other stuff (S) and has a diminishing marginal rate of substitution between housing and stuff. Jeff used to live and work in a small town where housing prices were relatively low. His company has decided to transfer him to a large city where housing prices are higher. (For simplicity, assume that all other prices are the same.) Using a diagram, explain to Jeff's company how to find the amount it needs to raise his salary to keep him just as well after the 2. transfer as he was before. Tridor
As the cost of devices and data plummet, India’s digital population is seeing a surge across many dimensions. Already, ________ (1.2 OR 1.5; Select ONLY one that applies) billion were enrolled in the world’s largest ___________ (data collection program, unique data identity program, OR surveillance system intitivative; Select ONLY one that applies) . Continued mass adoption of digital technologies is expected to have significant economic value to the Indian economy by 2025. Besides core digital services as well as financial services, India looks forward to seeing expanding digitalization transform industries such as ___________ (online shopping, agriculture, OR electronics ). Ultimately, as companies worldwide adopt and integrate new technologies, the ____________ (standards of happines, nature of work, OR ideals of Nirvana) is changing. In conclusion, it seems reasonable to infer that as more and more people become connected, to each other as well as to the grid, the opportunity…
The following graph approximates business cycles in the United States from the first quarter of 1955 to the third quarter of 1959. The vertical blue bar coincides with a period of six or more months of declining real gross domestic product (real GDP). Notice that real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, such as the blue-shaded period in 1957, is known as ________ (options: a recession, a business cycle, an expansion) True or False: Short-term fluctuations in real GDP are irregular and unpredictable. Which of the following probably occurred as the U.S. economy experienced increasing real GDP in 1958? Check all that apply.A. Industrial production declined.B. Consumer spending increased.C. The unemployment rate declined.D. Home sales declined.
Course: Macroeconomics Countries aim to improve and maintain the quality of life for their citizens. This works best when ____. income inequality is high, and the government is democratic consumption is high, and the government dictates the economic goals the trade balance is negative, and the government is stable income inequality is low, and the government is stable
14)Suppose that the annual rates of growth of real GDP of Econoland over a five-year period are as follows: Year Growth Rate (%) 1 3 2 1 3 – 2 4 4 5 5 Instructions: Round your answers to 2 decimal places. a. What was the average of these growth rates in Econoland over these 5 years? b. What term would economists use to describe what happened in year 3? (Click to select) Expansion Recession c. If the growth rate in year 3 had been a positive 2 percent rather than a negative 2 percent, what would have been the average growth rate?
Problem 3. (25 points) Below is data on two countries: Country A $21mil $25mil $10mil $15mil 100 Nominal GDP in 2015. Nominal GDP in 2016 Real GDP in 2015 Real GDP in 2016 Population in 2015 Country B $360mil $370mil $340mil $345mil 1000 Answer the questions below providing appropriate computations (i.e. computing and comparing GDP per capita, growth rates and inflation rates). 1. Which country has higher GDP per capita in 2015? What does this say about living standards? 2. Which country's economy grew more in 2016? 3. Which country has higher inflation in 2016?
a) the profit maximizing decisions of an individual manufacturer. b) economic growth. c) the rate of inflation. d) the rate of unemployment. Question 2. When nations desire a healthy macroeconomy, they typically focus on three goals, one of these being: a) low inflation b) balanced budget c) prudent monetary policy d) assuring competition between firms Question 3. If macroeconomics looks at the economy as a whole, it focuses on which of the following? a) the division of labor b) households c) business firms d) unemployed people Question 4. In the ______________, households receive goods and services and pay firms for them. a) goods and services market b) labor market c) financial capital market d) savings market Question 5. Which of the following is included in the calculated Gross Domestic Product? a) Farmer Freddie sells his second tractor to his son. b) Suzanne buys a love seat and chair for $85 at the yard sale on the corner. c) A local ice cream store sells…

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