Question 25☐Suppose that a simple economy produces only four goods and services: cars,homes, cheeseburgers and cheese. Assume all of the cheese are used in theproduction of the cheeseburgers. Also assume that Year 1 is the base year.What is the real GDP in this simple economy i inyear 2?2510030ProductQuantity(Year 1)Price (Year 1)Quantity (Year2)Price (Year 2)Cars50103015Cheeseburgers10051506Cheese501753ETTTTHomes50Selected answer will be automatically saved. For keyboard navigation, press up/down arrowkeys to select an answer.a2750b3700с3775P4875

Gross domestic product is the summation of a country's final goods and services. The increase in GDP…

Answered: Suppose that a simple economy produces…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider a simple economy that produces two goods: pencils and envelopes. The following table shows the prices and quantities of the goods over a three-year period. Year Pencils Envelopes Price Quantity Price Quantity (Dollars per pencil) (Number of pencils) (Dollars per envelope) (Number of envelopes) 2018 1 120 1 195 2019 2 130 4 195 2020 4 130 4 145 Use the information from the preceding table to fill in the following table. Year Nominal GDP Real GDP GDP Deflator (Dollars) (Base year 2018, dollars) 2018 2019 2020 From 2019 to 2020, nominal GDP , and real 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 includes the value of exports, but nominal GDP does not. Real GDP is not influenced by price changes, but nominal GDP is. Real GDP measures the…
Consider a simple economy that produces two goods: plastic cups and paper plates. The following table shows the prices and quantities of the goods over a three-year period. Price Plastic cups Quantity Price Paper plates Quantity (Dollars per plastic cup) (Number of plastic cups) (Dollars per paper plate) (Number of paper plates) Year 2018 2 2019 3 2020 2 255 165 130 Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP (Base year 2018, dollars) GDP Deflator Year (Dollars) 2018 900 2019 1,065 2020 845 From 2019 to 2020, nominal GDP and real GDP The inflation rate in 2020 was 2 3 3 Why is real GDP a more accurate measure of an economy's production than nominal GDP? Real GDP does not include the value of intermediate goods and services, but nominal GDP does. Real GDP is not influenced by price changes, but nominal GDP is. ◇ Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not. 195 190 195
A simple economy produces two goods, Pumpkin Pies and Computer Games. Price and quantity data are as follows: Production and Prices in Year 1 (Base year) Product Quantity Pumpkin Pies Computer Games 110 800 Price Per Unit Production and Prices in Year 2 Product Quantity Pumpkin Pies 137.50 Computer Games 1,200.00 In Year 2, nominal GDP is equal to: $, and real GDP is $(enter both responses rounded to the nearest penny). $1.00 $45.00 Price Per Unit $1.50 $90.00
Suppose an economy consists of only three goods, as shown in this Table: What is the nominal value of GDP in 2020 and 2021?
Consider a simple economy that produces two goods: pencils and oranges. The following table shows the prices and quantities of the goods over a three-year period. Pencils Oranges Price Price Quantity Quantity (Dollars per pencil) (Number of pencils) (Dollars per orange) (Number of oranges) Year 2016 125 1 200 2017 2 170 230 2018 4 150 4 170 Use the information from the preceding table to fill in the following table. Real GDP Nominal GDP (Dollars) (Base year 2016, dollars) GDP Deflator Year 2016 2017 2018 From 2017 to 2018, nominal GDP , and real GDP The inflation rate in 2018 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. Real GDP does not include the value of intermediate goods and services, but nominal GDP does. Real GDP is not influenced by price changes, but nominal GDP is.
Consider a simple economy that produces two goods: beers and donuts. The following table shows the prices and quantities of the goods over a three-year period. Beers Donuts Price Quantity Price Quantity (Dollars per beer) (Number of beers) (Dollars per donut) (Number of donuts) 2 245 2 180 4 130 2 195 2 115 2 155 Use the information from the preceding table to fill in the following table. Year Nominal GDP Real GDP (Base Year 2016, dollars) GDP Deflator (Dollars) 2016 2017 2018 From 2017 to 2018, nominal GDP ________________, and real GDP __________ . The inflation rate in 2018 was ___________.
Consider the GDP deflator and real GDP, given in thousands of dollars, for the country of Barbados. Year year 1 year 2 year 3 Real GDP $20,597 $10,557 $40,977 What is the nominal GDP for year 1? What is the nominal GDP for year 2? GDP deflator What is the nominal GDP for year 3? 122 The base year, or base period, is year 3. For the given years, calculate the nominal GDP. Round your answers to the nearest dollar. 113 100 year 1: year 2: year 3: $ $ 13234 Incorrect 12457 Incorrect 40977
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Instructions: Answer the following questions. Make sure to number your answers when you upload your response. Why do economists include only final goods in measuring GDP for a particular year? Why don’t they include the value of stocks and bonds sold? Why don’t they include the value of used furniture bought and sold? Which of the following are included in this year’s GDP? Explain your answer in each Interest on an AT&T corporate bond. b. Social security payments received by a retired factory worker. The unpaid services of a family member in painting the family home. The income of a dentist. e. The money received by Smith when she sells her economics textbook to a book buyer. The monthly allowance a college student receives from Rent received on a two-bedroom apartment. The money received by Josh when he resells his current-year-model Honda automobile to Kim. The publication of a college textbook. j.…
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Consider a simple economy that produces two goods: fries and burgers. The table shows the economy's production over several years. Calculate the real GDP for 2006 using 2004 as the base year. Year 2004 2005 2006 real GDP: Price of fries (in dollars) 6.00 8.00 9.00 Number of fries 4 4 5 Price of burgers (in dollars) 2.00 4.00 7.00 Number of burgers 3 5 8 dollars

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