What is the real GDP in year 2 of this simple economy?== 2000KIn year 3 the GDP deflator is 145. What is the inflation ratebetween year 2 and year 3?=1950In year 3 the Real GDP is 4000. What is the rate in real GDPbetween year 2 and year 3?III=3750= 3825III=III=205014.39% Suppose in a simple economy the following is produced. Note that all cheese produced is used in the production of cheeseburgersand the base year is year 1.ProductQuantity(Year 1)Price (Year 1)Quantity(Year 2)Price (Year 2)Cars502010030Homes105020160CheeseburgersCheese1005501150756Dragged and dropped options on the right-hand side will be automatically saved. For keyboard navigation... SHOW MOREWhat is the nominal GDP in year 1 of this simpleeconomy?What is the real GDP in year 2 of this simple economy?In year 3 the GDP deflator is 145. What is the inflation ratebetween year 2 and year 3?In year 3 the Real GDP is 4000. What is the rate in real GDPbetween year 2 and year 3?=12.68%=3625=6.67%=u 6.62%III=U2000III19503750

The cheese will not be included in the calculation of the GDP because cheese is the intermediate…

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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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The table below pertains to the country of Studious. To calculate the consumer price index (CPI), the country chooses 2021 as the base year and sets the typical basket of goods equal to consumption in that year. 2019 2020 2021 Price of a book $24 $30 $32 In this case the inflation rate is Quantity of books 3 4 Base year 2021 5 Price of paper Quantity of paper $9 6 $11 9 $12 10 24.3 percent in 2020 and 22.5 percent in 2021. 23.9 percent in 2020 and 9.5 percent in 2021. 23.9 percent in 2020 and 7.6 percent in 2021. 24.3 percent in 2020 and 7.3 percent in 2021.
Income in year 1: $50,000 Income in year 2: $60,000 CPI in year 1 = 100 CPI in year 2 = 110 what happened to nominal income between year 1 and year 2? what is real income in year 1 and year 2? what is the inflation rate?
Table 24-7 The table below lists the prices of chips and salsa for the year 2018, 2019, 2020. Assume that the typical consumer buys 8 bags of chips and 4 jars of salsa each month, and that 2019 is the base period. Year 2018 2019 2020 Price of Chips $2.50 $2.40 $2.60 Price of Salsa $2.50 $2.55 $2.75 Refer to Table 24-7. Calculate the inflation rate for 2020
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Bureau of Economic Analysis data show that with base year 2005 = 100, the GDP price index was 109.7 in the second quarter of 2009. In that same quarter, the PCEPI was 108.8. Given the further information that the prices of capital goods (investment) and foreign traded goods (exports and imports) increased at a slower pace than the prices of consumption goods and services, how would you explain the difference in the GDP price index and PCEPI measures of inflation? Choose the correct statement. A. The prices of government goods and services increased at the same pace as the prices of consumption goods. B. The prices of consumption goods increased at a faster pace than the prices of government goods. C. The prices of exports increased at the same pace as the prices of imports. D. The prices of government goods and services increased at a faster pace than the prices of consumption goods. E. The prices of capital goods and foreign traded…
In 2017, the median price of electric vehicles in the US was 64.300 thousand dollars/car and 199.826 thousand cars were sold. Also in 2017, the median price of electric vehicles in the US was decreasing by 8.700 thousand dollars/car per year and sales were increasing by 167. 481 thousand cars per year. What was the rate of change of the revenue generated by electric vehicle sales in the US in 2017?
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Economics
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator. The GDP deflator for this year is calculated by dividing the value of all goods and services produced in the economy this year using_________ by the___________using___________and multiplying by 100. However, the CPI reflects only the prices of all goods and services____________.

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