Suppose an economy produces two goods: Apple and Banana. Calculate Nominal GDP and Real GDP by taking 2015 as a base year. Prices and Quantities Quantity of Apple Price of Apple Quantity of Banana Year Price of Banana 2015 $2 100 $3 50 2016 $3 150 $4 100 2017 $4 200 $5 150

Suppose an economy produces two goods: Apple and Banana. Calculate Nominal GDP and Real GDP by taking 2015 as a base year. Prices and Quantities Quantity of Apple Price of Apple Quantity of Banana Year Price of Banana 2015 $2 100 $3 50 2016 $3 150 $4 100 2017 $4 200 $5 150

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Calculate Nominal GDP if Real GDP is 2700, GDP Deflator is 70 and the price of nutmeg is $10 and…

A: Real GDP can be calculated by using the following formula.

Q: Nominal GDP Price Index Year 3 $5,500 135 Year 4 $6,800 150 Show formulas and math! a)What is real…

A: Nominal GDP measures the the money value of all final goods and services produced in an economy…

Q: The following table for an economy produces only burgers and coke drinks and the base year is 2017…

A: A. Calculation of nominal GDP for 2017 As the economy produce only burgers and coke drinks, the…

Q: Using the image attached calculate: 1. The value added at each stage of production 2. The…

A: 1) For the value added in each stage of production:

Q: his economy only produces two goods apples and TV. For the years 1997 and 1998 the quantities are…

A: We have been given that the prices and quantity of Apple and TV produced in an economy.…

Q: Question 2. The value of economic activity: GDP An economy has produced 50 cars and 10 planes in…

A: Gross domestic product measures the market value of final goods and services produced by an economy…

Q: National income account Personal consumption expenditures Personal taxes Government consumption and…

A: GDP is the sum total of the market value of final goods and services produced in a country during a…

Q: Coffee Coffee Makers Bean Grinders Price Quantity Price Cappuccinos Quantity Price Quantity Price…

A: The GDP price deflator tracks price fluctuations across all commodities and services produced in a…

Q: Price of Quantity of cheese $5 Quantity of Wine Price of Year Cheese Wine 2018 2 Blocks $10 4…

A: Year Price of cheese Quantity of cheese Price of wine Quantity of wine 2018 $5 2 $10 4 2019…

Q: Calculate the value added by the firm if it is give that domestic sales of firm is $9000 , exports…

A: The data presented in the question is as:- Domestic sales = $9000 Exports = $3300 Purchase made by…

Q: Product Quantity Price Quantity Price Eye examinations 100 $40 150 $60 Shoes $150 $200 25 40…

A: Nominal GDP measures market value of goods and services using current prices whereas real GDP is…

Q: The island nation of Coronia subsists entirely on pancakes and syrup. That is, they produce and…

A: (a) CPI is a measure of average prices of a fixed market basket of goods and services. (b) GDP…

Q: national income accounts for the U.S. for 2005 billions of dollars billions of chained (2000)…

A: Nominal GDP and real GDP are two different methods of GDP calculation.

Q: Perform these same calculations for 2018 and 2019, and enter the results in the following table.…

A: In an economy, the CSPI is calculated by dividing the current year's cost of basket to the cost of…

Q: a. The income-based estimate of Metrica's GDP is $1 b. The expenditure-based estimate of Metrica's…

A: Solution is given below step by step.

Q: Participants Cost of Materials Value of Sales Farmer $0 $100 Cone factory and ice cream-maker…

A: This table shows different participants , different cost of materials and different values of sales…

Q: Papayas Price (2015, base Quantity (2015, year) base year) $12 Watermelon $24 3.74% 1.95% 2.27%…

A: GDP is the gross domestic product. GDP is defined as the market value of all the final goods and…

Q: The chart gives prices and output information for the country of New Zealand. Use this information…

A: GDP is the gross domestic product. GDP is the market value of all final goods and services produced…

Q: An economy produces only food and fun. The table shows the quantities produced and prices in 2018…

A: Value of 2019 production in 2018 prices = Quantity of food (2019) * Price of food(2018) + Quantity…

Q: Milk Quantity of Milk (Quarts) Price of Honey Quantity of Honey (Quarts) 2007 $1 100 $2 50 2008…

A: Nominal gross domestic product(GDP) is GDP given in current costs, without change for inflation.…

Q: In 2003, the economy of Boonton’s nominal GDP was $1300 and its GDP deflator was 200. Calculate…

A: Nominal GDP includes both the growth and prices. Real GDP shows only the growth in the economy. Real…

Q: GDP data for 2019 Item Quantity Price Fun 40 $2 Food 60 $3

A: Real GDP in 2020 , when 2019 is the base year: Real GDP 2020 = Price (2019) * quantity (2020)…

Q: 2010 Price Quantity 100 2016 Price QuantitY 113 55 85 10 se.24 50.32 0.29 0.34 1.04 0.64 0.43 50…

A: a) The simple price index formula is given by = Pcurrent/Pbase *100 Thus, Fruit Price Index…

Q: Apples Oranges Price Quantity Price Quantity Year (Dollars per apple) (Number of apples) (Dollars…

A: Nominal GDP measures the value of goods and goods and services produced in the economy at current…

Q: A small economy produces three main products, products A, B, and C. The following table indicates…

A: Use the below formula to find the real GDP: Real GDP = Base year price x Current year quantity

Q: Question 1 A tiny country only produces two goods: Computer and TV. The following table shows the…

A: The GDP deflator is a measure of price inflation or deflation in an economy. It is a price index…

Q: Consider an economy that produces and consumes haircuts and cars. The next table contains data on…

A: Real GDP will be the inflation-adjusted GDP for a nation while the Nominal GDP refers to a Gross…

Q: Item Personal consumption expenditure Government expenditure on goods and services Net taxes Gross…

A: GDP is the value of the final goods and services that are produced and manufactured in a country.

Q: GDP Data (in $ billion) Table 7-1 Durable goods = $11,080.00 Services = $12,500.56 Business…

A: Gross domestic product is a monetary measure of the market value of all the final goods and services…

Q: Value of the final goods and services produced in a given year valued at that year's prices A.…

A: Growth in economic parameters happens when the final value of the output of goods and services…

Q: In a small economy two goods are produced: meat and potatoes. Assume the following values: Year…

A: Gross domestic product (GDP) is a measure of the total value of final goods and services that get…

Q: None

A: Part 2: ExplanationStep 1: Calculate the nominal GDP for 2006Widgets:Quantity: 1Price: $450Total: 1…

Q: The difference between the measurement of nominal GDP and real GDP is Nominal GDP is measured by…

A: Given that it represents the ebbs and flows of an economy's fortunes, national income analysis is an…

Q: The table displays price and quantity information for two vehicle models produced by Ford Motor…

A: Nominal GDP in 2016 and 2017 can be calculated as follows: Thus, the nominal GDP in 2016 is…

Q: The measure of production that values output using a base year (constant price) is called:…

A: GDP is the value of all final goods and services produces within the domestic boundaries of a…

Q: The gross domestic product (GDP) is looking at the total production of goods and services that are…

A: Introduction The gross domestic product (GDP) is looking at the total production of goods and…

Q: 4. Measuring GDP The following table shows data on consumption, investments, exports, imports, and…

A: GDP (Gross Domestic Product): It refers to the total of market value of all produced final goods and…

Q: An economy produces only food and fun. The table shows the quantities produced and prices in 2018…

A: The method of comparing the present domestic productivity with that of the previous year's…

Q: 2015 2016 2017 2018 2019 2020 GDP in Current US$ 18,238.30 18,745.08 3 21,433.22 (Billion) GDP in…

A: Solution- 2015- Nominal GDP per capita=Gross Domestic Product/Population…

Q: The table provides data on the economy of Pak Republic that produces only fish and crabs. Quantities…

A: GDP deflator =Nominal GDPReal GDPx100

Q: Problem Country produces 100 pizza at price $8, 20 tomatoes at price $2 and 45 meat at price $6.…

A: Gross domestic product refers to the total value (market value/monetary value) of all finished goods…

Q: Question 8 The table shows an economy's total production and the prices of the final goods it…

A: Real GDP is a country's gross domestic product after accounting for inflation. GDP is significant…

Q: ITEM Amount ($) Government purchase of goods and services 1,721.6 Exports 1,096.3 Receipts of…

A: GIVEN DATA ITEM Amount ($) Government purchase of goods and services 1,721.6 Exports…

Question

Suppose an economy produces two goods: Apple and Banana. Calculate Nominal GDP and Real GDP by
taking 2015 as a base year.
Prices and Quantities
Quantity of
Apple
Price of Apple
Quantity of
Banana
Year
Price of Banana
2015
$2
100
$3
50
2016
$3
150
$4
100
2017
$4
200
$5
150

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Consider a simple economy that produces two goods: apples and envelopes. The following table shows the prices and quantities of the goods over a three-year period. Year Apples Envelopes Price Quantity Price Quantity (Dollars per apple) (Number of apples) (Dollars per envelope) (Number of envelopes) 2016 2 115 5 175 2017 4 150 2 180 2018 1 100 2 160 Use the information from the preceding table to fill in the following table. Year Nominal GDP (Dollars) Real GDP (Base year 2016, dollars) GDP Deflator 2016 2017 2018 From 2017 to 2018, nominal GDP: (a. increased, b. decreased), and real GDP (a. increased, b. decreased) . The inflation rate in 2018 was: (a. -47.5%, b. -0.5%, c. 47.5%, d. 52.5%, e. 190.5%) . Why is real GDP a more accurate measure of an economy's production than nominal GDP? a. Real GDP includes the value of exports, but nominal GDP does not.…
The table below presents a brief summary of City A’s total spending, local GDP, and population changes. Read the table and answer the following questions. 2010 2020 Total spending ($ million) 89 104.12 Local GDP ($ millions) 110 134 Population 50,000 56,275 CPI deflators (2012=1) 0.96 1.05 Calculate % change for City A’s total spending from 2010 to 2020 in current dollars. *Results round to the nearest 2 decimal places. Calculate % change for City A’s total spending from 2010 to 2020 in constant dollars. *Results round to the nearest 2 decimal places. Why does % change calculated from constant dollars differ from % change calculated from current dollar? Calculate per capita spending in 2010 and 2020, respectively, using constant dollars. *Results round to the nearest dollar. 2010 per capita spending: 2020 per capita spending: Calculate the compound annual growth rate of per capita spending from 2010 to 2020…
GDP Data (in $ billion) Table 7-1 Durable goods = $10,600.49 Services = $12,500.56 %3D Business purchases of capital goods = $1,080.00 Fixed investment = $1,970.45 Exports = $700.00 Imports = $820.46 Nondurable goods = $1,000.46 Inventory investment = $301.25 Government transfer payments - $1,240.26 %3D Purchases of new residential housing - $890.45 Government purchases = $7.890.56 Refer to Table 7-1. GDP is equal to O S34,141.31 O $33,143.31 O $34,133.31 O $34.143.31
Question 2 Suppose the information in the table is for a simple economy that produces and consumes only four c and services: textbooks, hamburgers, shirts and cotton. Base Year Product Textbooks = Shirts Cotton 2011 90 Hamburgers 75 50 100 O Quantity Price 2011 W Quantity $50 100 2 X 100 50 • Calculate the nominal GDP for 2011. 6,230 30 0.80 800 • Calculate the nominal GDP for 2012. 7,930 2012 Calculate the nominal GDP for 2013. 8,479 Price $60 12 25 0.60 Quantity 100 120 2013 65 120 Price $65 12.15 25 0.70
Compute the values of nominal GDP 2017, 2018 and 2019.
Below are some data from the productions of milk and honey. a) Compute nominal GDP, real GDP, and the GDP deflator for each year, using 2010 as the base year. b) Compute the percentage change (growth rate) in nominal GDP, real GDP, and the GDP deflator in 2011 and in 2012 from the preceding year.
A country produces 5 planes and 10 cars. the price of one unit of plane is given by $100 while the price of Car is $1. Calculate the GDP of this country ?
Type answer with proper explanation please
Calculate REAL GDP if Nominal GDP is 3600, GDP Deflator is 100 and the price of nutmeg is $12 and the price of grapes is $9.
1. A simple economy produces three commodities: beer, cheese, and popcorn. The following data shows total production for this economy in 1999 and 2000: Beer Cheese Popcorn 1999 2000 1999 Quantity 200 300 100 1999 2000 Using 1999 as the base year, complete the following table for the economy: Nominal GDP (a) (b) Nominal GDP Real GDP 10,000 (1) (c) (d) 1999 Price $ 6.00 7.00 7.00 Real GDP (2) (3) GDP Price Index (e) (f) 2000 Quantity 200 300 100 Inflation Growth rate of rate nominal GDP 2. Complete the following table for a simple economy, assuming that 1999 is the base year: GDP Price (g) Index (4) (5) Inflation rate 2000 Price $7.00 9.00 9.00 --- (h) 5% Growth rate of real GDP Growth rate of nominal GDP (6) (i) Growth rate of real GDP 5%
Table 1 Quantity Price Quantity Price Item 1990 1990 1991 1991 Coffee 10 ---- 8 $50 Sugar 20 $1 15 $2 Refer to table 1 to answer the below question. In 1990, consumers in Dexter consumed only Coffee and Sugar. The prices and quantities for 1990 and 1991 are listed in table 1. The reference base period for Dexter's is 1990 and the Nominal GDP1990 was 320. Calculate the consumer price index (CPI) in 1991 * 59.37 134.37 168.75 118.75
The following data represents the output and price of the goods and services produced in the country of Florin in 2018, which specializes in the production of just three things. 2017 is the base year. Production Data Products 2017 Quantity 2017 Price 2018 Quantity 2018 Price haircuts 8 686 face wash 8 3 3.8 prom dresses 2 4 1 5 Calculate Florin's 2017 GDP deflator.