Question 1 Suppose an economy consists of only two types of products: laptops and automobiles. Sales and price data for these two products for two different years are shown below: 2015 2021 Quantity sold 2019 Products Quantity sold Price Price Price Quantity sold Laptop Automobiles 200,000 60,000 (RM) 2,000 40,000 500,000 80,000 (RM) 3,000 60,000 450,000 90,000 (RM) 3,500 80,000 Calculate: a) Nominal Gross Domestic Product (GDP) in 2019 and 2021. b) Real Gross Domestic Product (GDP) in 2019 and 2021 using 2015 as base year. c) Based on your answers to questions (a) and (b), which one of them accurately measures the growth of GDP and why?

Question 1 Suppose an economy consists of only two types of products: laptops and automobiles. Sales and price data for these two products for two different years are shown below: 2015 2021 Quantity sold 2019 Products Quantity sold Price Price Price Quantity sold Laptop Automobiles 200,000 60,000 (RM) 2,000 40,000 500,000 80,000 (RM) 3,000 60,000 450,000 90,000 (RM) 3,500 80,000 Calculate: a) Nominal Gross Domestic Product (GDP) in 2019 and 2021. b) Real Gross Domestic Product (GDP) in 2019 and 2021 using 2015 as base year. c) Based on your answers to questions (a) and (b), which one of them accurately measures the growth of GDP and why?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Solve it correctly please. I will rate accordingly.
t (years since 2008) GDP (trillion dollars) 14.67 -14.81 0.25 0.5 0.75 14.84 14.55 14.38 (a) Estimate the relative growth rate (percent per year) at the first four times in the table. NOTE: Round your answers to one decimal place. Relative growth rate at 0 Relative growth rate at 0.25 % Relative growth rate at 0.5 Relative growth rate at 0.75 = (b) Economists often say an economy is in recession if the GDP decreases for two quarters in a row. Was the US in recession in 2008? because The US Choose one Choose one ▼
Write the equations of the vertical and horizontal lines through the point (- 1.3, - 3.7). The equation of the vertical line is (Type an equation.) The equation of the horizontal line is (Type an equation.)
Year: 1973 1974 1975 1976 1977 1978 1979 1980 1981 O 1974 1975 O 1978 Real GDP in 2005 Dollars 1980 (Billions) 4,917 4,889 4,879 5,141 5,377 5,677 5,855 5,839 5,987 % Change from the previous year Using the above table, in which year would you expect the interest rate to be rising? 5.8 -0.6 -0.4 5.6 4.6 5.5 3.2 -0.2 2.5 Civilian Unemployment % (year's end) 4.9 5.6 8.5 7.7 7.1 6.1 5.8 7.1 7.6 Inflation Rate for the CPI (Dec. to Dec.) 6.2 11.0 9.1 5.8 6.5 7.6 11.3 13.5 10.3
Suppose we have the following information about a car manufacturer: car sales £1000, steel purchases £600, wages £300, interest on business loans £50, and profits £50.What is its contribution to GDP using the product approach?(a) £1,000.(b) £600.(c) £400.(d) £350.(e) £160.
None
1. Key facts about economic fluctuations The graph included below approximates United States business cycles between quarter one of 1953 and quarter three of 1957. The shaded region denotes periods of six or more consecutive months of declining real gross domestic product (real GDP). REAL GDP (Billions of dollars) 2700 2600 2500 2400 2300 1953 1954 1955 1956 1957 (?)
Aggregate Variables Value (in billions of dollars) in the base year Consumption spending $900 Investment spending $400 Government spending $200 Transfer payments $60 The marginal propensity to save is equal to 0.4 and there are no exports or imports, (a) Calculate the real GDP in this country, Show your work (b) Calculate the marginal propensity to consume Show your work. (c) Suppose that the government increases spending from $200 billion to $300 billion (i) Calculate the maximum change in real GDP. Show your work (ii) Given the change in real GDP in part (c)(i), calculate the maximum level of the new equilibrium real GDP. Show your work (d) Suppose that taxes decrease by $100 billion. Will the maximum change in real GDP be larger than, smaller than, or equal to the change in part (c)(i)? Explain.
The equilibrium level of real GDP is Real GDP Consumption (Y) (C) $8,000 $6,200 9,000 10,000 11,000 12,000 6,850 7,500 8,150 8,800 Planned. Gov't Net Investment Purchases Exports Aggregate Planned (1) $1,675 (G) (NX) $1,675 -$500 Expenditure $9,050 1,675 1,675 -$500 9,700 1,675 1,675 -$500 1,675 -$500 1,675 -$500 1,675 1,675 10,350 11,000 11,650 Unplanned Change in Inventories $-1,050 -700 -350 350
Each term (3 months) the current group of economics students completed a questionnaire as to how much they would spend on new purchases compared to how much they would save/pay off bills, if they suddenly and unexpectedly received a check for $1,000. The average MPC is shown in the table below. Month in which student poll was taken Average of students’ responses as MPC March 0.41 June 0.30 September 0.22 December 0.56 What do these MPC’s imply about the students’ thinking over the course of the year? (Enter response here.) What is likely happening in the economy during the same period of time?
2006 2006 2011 2011 Product Quantity Price Quantity Price Movies 20 $6.00 30 $7.00 Burgers 100 $2.00 90 $2.50 Bikes 3 $1,000.00 6 $1,100.00 Use the information to calculate (a)Nominal GDP of 2011 and (b)Real GDP in the year 2011 (Assume 2006 as the base year). (c)ls it ever possible for Real GDP to be higher than Nominal GDP of any year? when? ( 1-2 LINES ONLY)
The table provides some data for an economy in 2017 and 2018. Calculate labor productivity in 2017 and 2018. What is the growth rate of labor productivity in 2018? >>> Answer to 2 decimal places.