Q1) The economy produces only two products: vegetable oil and wheat. TH following table shows quantity and price in 2020 and 2021. 2020 2021 Quantity Price Quantity Price vegatable_oil 200 50 220 100 wheat 400 10 600 19 a) Calculate nominal GDP b) Calculate real GDP C) Calculate implicit price deflator for GDP
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- The following table pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys. Price of a Toy Price of Meat (Dollars per pound) (Dollars per toy) 3 Year 1 2 3 1 4 Refer to Table 25-2. The cost of the basket 2 7 5 increased from Year 1 to Year 2 and increased from Year 2 to Year 3. increased from Year 1 to Year 2 and decreased from Year 2 to Year 3. decreased from Year 1 to Year 2 and increased from Year 2 to Year 3. decreased from Year 1 to Year 2 and decreased from Year 2 to Year 3.Table: Market for Apartments Rent (per apartment per month) Quantity Demanded (millions of apartments) Quantity Supplied (millions of apartments) $1.400 1.6 2.4 1,300 1.7 2.3 1,200 1,100 1.8 2.2 1.9 2.1 1,000 900 800 2.0 2.0 2.1 1.9 2.2 1.8 700 2.3 1.7 600 2.4 1.6 (Table: Market for Apartments) Look at the table Market for Apartments. If a price ceiling of $700 is imposed on this market, the result will be an inefficiency in the form of a million apartments. O shortage of 0.6 O surplus of 0.6 O None of these options is correct. O shortage of 0.2 O surplus of 0.2Additional Problem 3 Appendix Question Help An economy produces only food and fun. The table shows the quantities produced and prices in 2018 and 2019. The base year is 2019. In 2018 Calculate the value of 2018 production in 2019 prices and the percentage change in production when valued at 2019 prices. Item Quantity Price Food 100 $1 The value of 2018 production in 2019 prices is $ Fun 71 $3 In 2019 Item Quantity Price Food 73 $6 Fun 69 $8 Enter your answer in the answer box and then click Check Answer. Check Answer Clear All 1 part remaining DII DD F12 F11 F10 O00 000 F9 F8 吕0 F7 F6 F5 F4 F3 esc F2 F1 & 2$ % @ 7 8 2 3 4 1 { P | W E R Q
- (1) Recent measurements have shown a significant deterioration in the quality of the Scottish seaside. Which of the following statements are compatible with this observation? A. The real value of GDP has increasedB. The real value of GDP remains the same C. North Sea oil wells have dried upD. The price of swimming costumes has gone down (2) The impact of Covid-19 on happiness is negative because A. it decreased economic activityB. it coincided with BrexitC. it forced social isolationD. it obliged people to develop new Information Technology skills(i) A is correct(ii) A and B are correct(iii) A and C are correct(iv) All of the above are correctCalculate total GDP for this economy given the following components of demand. Round your answer to the nearest tenth and enter the value in trillions of dollars. Components of GDP on the Demand Side (in trillions of dollars) Consumption Investment Government spending Exports Imports Provide your answer below: trillion Total GDP 12.9 3.8 4.2 3.0 4.2 ?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
- Consider the following data on Prices and Quantities of oranges and VCRs. From a. - k. 3 marks each An economy produces only two goods, oranges and VCRs. The quantities and prices for the years 1998 and 1999 are shown in the table. The bose year is 1998. 1998 1999 Oranges Price Quantity Price Quantity VCRs $2 5,000 $3 4,000 V.00 1,000 $300 2,000 a. Calculate the total value of goods and services at current prices in this economy in 1998. b. Calculate the total value of goods and services at current prices in this economy in 1999. c. Calculate the total value of goods and services at constant prices in this economy in 1998 d. Calculate the total valuea. Consider an economy which produces and sells, among a host of other things, 100 million T‑shirts a year. The average T‑shirt begins life when a farmer plants seeds she put away last year, waters them, and harvests the cotton, then sells the cotton to a mill for $0.75, which sells the fabric to a T‑shirt factory for $1.50, which sells its T‑shirts to a wholesaler for $5, who sells it to Nordstrom for $10, which finally sells it to you for $17. Determine the impact of T‑shirts on annual GDP by calculating the value added of the entire production process. b. Now, calculate the amount spent on T‑shirts in a year if 100 million T‑shirts are sold, each for $17. How does this compare to the amount calculated through the value‑added method?3. In a small community, breakfast is the most important meal of the day. Therefore, the only two goods that this community produces are coffee and scones in the following amounts: Year 2020 2021 Quantity 60 cups 90 cups Coffee Price $1.25 $1.45 Quantity 45 units 65 units Scones Price $2.10 $3.95 a) Calculate the inflation rate for 2021 using the GDP deflator method (assume that 2020 is the base year for real GDP calculations). Show your work. b) Calculate the inflation rate for 2021 using the CPI method (assume that 2020 is the base year for CPI calculations). Additionally, assume that the consumption basket for both years contains only 10 cups of coffee and 40 scones. Show your work. c) Compare the results of both inflation calculations and explain why they are similar or different based on the two methods and on the specific data used in this example.
- Consider the following table, which provides the price of beef and the price of all foods from 2014 to 2022. Price of Price of Relative Year All Food Beef Price 2014 96 98 102.08 2015 97 99 102.06 2016 100 100 2017 103 103 2018 104 105 2019 108 106 2020 111 114 2021 113 116 2022 116 114 The relative price of beef is calculated as: (Price of Beef/Price of all foods) x 100. In 2020, the relative price of beef was close to O 114.16 O 111.10 O 102.70 O 98.27Pete is a student who spends 10 percent of his expenditure on books and supplies, 30 percent on tuition, 30 percent on rent, 10 percent on food and drink, 10 percent on transportation, and the rest on clothing. The price index for each item was 100 in 2009. The table shows the price indexes in 2019. Item Price index in 2019 Books and supplies 172.6 Tuition 169.0 Rent 159.0 Food and drink 129.8 Transportation Clothing 115.4 92.9 What is Pete's CPI in 2019? Pete's CPI in 2019 is >>> Answer to 1 decimal place. [Hint: The contribution of each item to the CPI is its price weighted by its share of total expenditure.]Suppose you have the following information about production levels of Ibs. of caviar and bottles of wine, and the market-clearing prices for each of the nine allocations: 5. Caviar Wine Pricecaviar Pricewine GDP Allocation $50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 $166.67 187.50 $350.00 175.00 A 90 100 B 80 200 214.29 250.00 300.00 116.67 87.50 70 300 60 400 E 50 500 70.00 375.00 500.00 58.33 50.00 F 40 600 G 30 700 H 20 800 750.00 43.75 I 10 900 1500.00 38.89 A. How much wine must be sacrificed to produce 1 more lb. of caviar? B. Is allocation point A efficient? (As in class, prove your conclusion with math) C. Which allocation point is efficient? (As in class, prove your conclusion with math) D. Suppose government assesses a tax of $40 per bottle of wine, but no tax on caviar. i) what will be the new equilibrium? Why? ii) how much of the tax is forward shifted? Explain iii) how much of the tax is backward shifted? Explain