sider a simple economy that produces two goods: pens and muffins. The following table shows the prices and quantities of the goods over a three- ar period. Pens Muffins Price Quantity Price Quantity Year (Dollars per pen) (Number of pens) (Dollars per muffin) (Number of muffins) 2016 2 125 3 155 2017 4 135 3 210 2018 2 125 3 165 e the information from the preceding table to fill in the following table. Nominal GDP Real GDP ear (Dollars) (Base year 2016, dollars) GDP Deflator 016 017 018 m 2017 to 2018, nominal GDP and real GDP

sider a simple economy that produces two goods: pens and muffins. The following table shows the prices and quantities of the goods over a three- ar period. Pens Muffins Price Quantity Price Quantity Year (Dollars per pen) (Number of pens) (Dollars per muffin) (Number of muffins) 2016 2 125 3 155 2017 4 135 3 210 2018 2 125 3 165 e the information from the preceding table to fill in the following table. Nominal GDP Real GDP ear (Dollars) (Base year 2016, dollars) GDP Deflator 016 017 018 m 2017 to 2018, nominal GDP and real GDP

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 two goods are produced in Macroland - Pens and Notepads. Given below are the quantities and prices of these goods in the years 2016 and 2017 Price (2016) Quantity (2016) Price (2017) Quantity (2017) 325 Pens 300 1.5 Notepads 3 200 4 250 Assume 2016 is the base year. Calculate the Real GDP for the year 2017. O so00 O $1487.5 O $1075 O $100
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5. Real versus nominal GDP Consider a simple economy that produces two goods: cupcakes and erasers. The following table shows the prices and quantities of the goods over a three-year period. Year 2018 2019 2020 Cupcakes Year 2018 2019 2020 Price (Dollars per cupcake) 1 2 4 Quantity (Number of cupcakes) 120 130 130 Price (Dollars per eraser) 1 Erasers 4 4 Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP (Dollars) (Base year 2018, dollars) GDP Deflator and real GDP Quantity (Number of erasers) 195 From 2019 to 2020, nominal GDP The inflation rate in 2020 was Why is real GDP a more accurate measure of an economy's production than nominal GDP? ● Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods and services an economy consumes. 195 145 ● Real GDP is not influenced by price changes, but nominal GDP is. Real GDP includes the value of exports, but nominal GDP does not.
Suppose the following table records the total output and prices of rice and gasoline for an entire economy. This economy produces rice and gasoline only. Further suppose the base year is 2015. Rice Gasoline Year Price Quantity Price Quantity 2015 $8.00 500 $2.00 2000 2016 $9.00 600 $2.30 2000 2017 $10.00 600 $3.00 1800 (1) Compute nominal GDP for 2015, 2016, and 2017. (2) Compute real GDP for 2015, 2016, and 2017. (3) Compute GDP deflator for 2015, 2016, and 2017. (4) Calculate inflation rate from 2016 to 2017 using GDP deflator you calculated above. Write your calculation below:
a. Using the following table to calculate GDP price deflator in 2021 and 2022, and the change in overall price level from 2021 to 2022 nominal GDP in 2021 was $104,000 in 2022 was $112,000 real GDP in 2021 was $84,000 and in 2022, $88,000 b. Consider an economy, only producing two good Apple and orange in both year one need to Ken the real GDP of this economy, increase between one and two, while the nominal GDP decreases or remain the same explain your answer with a numerical example Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
The country of Huskies produces two goods: footballs and basketballs. Below is a table showing prices and quantities of output for three years: Quantity of Footballs Quantity of Basketballs Price of Price of Year Footballs Basketballs Year 2016 $10 120 $12 200 Year 2017 12 200 15 300 Year 2018 14 180 18 275 a) Calculate nominal GDP for three years b) Calculate real GDP using 2016 as a base year c) Calculate GDP deflator for these three years
The table below is extracted from Happy land Republic, Bureau of Statistics recordsfor 2018-2019. Use the information in this table to answer the questions that follow.i. Calculate Happy Land Republic’s nominal GDP and real GDP in 2016ii. Why does real GDP always defer from nominal GDP?Item Base year (2015) 2016Production Price Production PriceUsed car sales 5,000 2000.00 6,000 2,500Factory components sales 8,000 500.00 10,000 1200.00Cloth sales 8,000 20.00 14,000 35.00Beef sales 1,500 10.00 1,800 12.00Milk litres sales 5,000 1.30 6,000 2.50Computers sales 2000 500.00 2500 800.00Printers sales 500 300.00 400 355.00Raw materials for tractorassembling plant sales 4500 250.00 4450 300.00
The Table shows the GDP deflator for the year 2019 and nominal GDP of Fairyland for the years 2019 and 2020. You are told that prices in Fairyland rose by 5% in 2020 Calculate the percentage increase in Real GDP in 2020. Year GDP deflator Nominal GDP 2019 120 $240000 2020 Not given $277200 According to the U.S. Bureau of Labour Statistics a bread cost $5 in the year 1997 and cost $10.26 in 2022. Imagine your salary was $100 in 1997 and $250 in 2022. How much % has your real salary grown in terms of bread?
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1. Consider an economy that produces and consumes bread and cars. The data for two differentyears are as follows:Year 2000 Year 2010Goods Quantity Price Quantity PriceCars 100 $ 50,000 120 $ 60,000Bread 500,000 $ 10 400,000 $ 20 a) Use the year 2000 as the base year, compute the Nominal GDP for each year (both 2000 and2010). b) Use the year 2000 as the base year, compute the Real GDP for each year (both 2000 and2010) c) Compute the implicit price deflator in year 2010 and use it to explain how the price level haschanged from year 2000 to 2010. (Note: implicit price deflator = GDP Deflator). 2. Consider a Cobb-Douglas production function with three inputs. K is capital (the number ofmachines), L is labor (the number of workers), and H is human capital (the number of collegedegrees among the workers) . The production function is