Suppose that a simple economy produces only the following four goods and services: shoes, hamburgers, shirts, and cotton. Further, assume that all of the cotton is used to produce shirts. Use the information in the following table to calculate Nominal Gross Domestic Product (Nominal GDP) for 2022. PRODUCTION AND PRICE STATISTICS FOR 2022 Price $65.00 3.00 30.00 0.75 The Nominal GDP for the year 2022 is $ Product Shoes Hamburgers Shirts Cotton Quantity 125 110 60 2,200

Suppose that a simple economy produces only the following four goods and services: shoes, hamburgers, shirts, and cotton. Further, assume that all of the cotton is used to produce shirts. Use the information in the following table to calculate Nominal Gross Domestic Product (Nominal GDP) for 2022. PRODUCTION AND PRICE STATISTICS FOR 2022 Price $65.00 3.00 30.00 0.75 The Nominal GDP for the year 2022 is $ Product Shoes Hamburgers Shirts Cotton Quantity 125 110 60 2,200

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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GDP is a strong measure of the health of the economy, and it’s among the most important and widely reported economic data. · In your own words, summarize nominal GDP. · Discuss the limitations of gross domestic product (GDP) as a measurement tool. · What is the difference between real and nominal GDP? · Locate an online news article that discusses impacts to GDP in some way. Summarize the article and explain its relation to/impact on GDP. · Cite your sources.
Consider a simple economy that produces two goods: stickers and donuts. The following table shows the prices and quantities of the goods over a three-year period. Stickers Donuts Price Quantity Price Year (Dollars per sticker) (Number of stickers) (Dollars per donut) Quantity (Number of donuts) 2019 2 215 3 155 2020 st 4 135 3 210 2021 2 150 3 190 Use the information from the preceding table to fill in the following table. Nominal GDP (Dollars) Real GDP (Base year 2019, dollars) GDP Deflator Year 2019 2020 2021 From 2020 to 2021, nominal GDP and real GDP ' The inflation rate in 2021 was 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 includes the value of exports, but nominal GDP does not. Real GDP is not influenced by price changes, but nominal GDP is.
Consumers in a small economy spend $50,000 on goods and services annually. Also annually, investment is $10,000, government spending is $7,000, exports are $400, and imports are $200. What is the value of GDP in this economy? Provide your answer below:
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 $3.00 1800 (1) Compute nominal GDP for 2015, 2016, and 2017. (2) Compute real GDP for 2015, 2016, and 2017. (3) Compute GDP deflator for 2015, 2016, and 2017. (4) Calculate inflation rate from 2016 to 2017 using GDP deflator you calculated above. Write your calculation below:
Consider the following data for a hypothetical economy that produces two goods: milk and honey. Quantity Produced Prices Milk (litres) Honey (kg) Milk ($/litre) Honey ($/kg) Year 1 110 45 2 6 Year 2 125 40 37 Compute nominal GDP for each year in this economy. Using year 1 as the base year, compute real GDP for each year. What is the percentage change in real GDP from year 1 to year 2? Using year 1 as the base year, compute the price deflator for each year. Now compute the GDP deflator for each year, using year 2 as the base year. Explain why the measures of real GDP growth (and growth in the deflator) depend on the choice of base year.
Consider an economy that produces and consumes bread and automobiles. In the following table are data for two different years. Year 2000 2010 Price of an automobile $40,000 $50,000 Price of a loaf bread $20 $30 | Number of auto-mobiles produced 100 cars 120 cars Number of loaves of bread produced 600,000 loaves 500,000 loaves Using the year 2000, compute the following statistics for each year: nominal GDP, real GDP, the implicit price deflator for GDP, and a fixed-weight price index such as CPI.(
In 2010, the GDP in the tiny country of Lindora was $4 million and the price of a market basket of goods was $15. In 2022, the GDP in Lindora was $5 million and the price of a market basket of goods was $35. Given this information, it is clear that Lindora's GDP had a higher level of production in 2022 than in 2010. Evaluate this statement.
The following table shows the data for a hypothetical economy in a specific year. All figures are in billions of dollars. Category Billions of Dollars Personal consumption expenditures Purchases of stocks and bonds Net exports Government purchases $60 30 -10 30 Sales of secondhand items 8 Gross investment 25 Instructions: Enter your answer as a whole number. What is the country's GDP for the year? $ billion
With the following information calculate the GDP for nation X The country's spending on consumer goods and services was $60 Businesses invested $15 and built up their inventories of goods $5 The Government of X spent $25 on goods and services and made $5 of transfer payments X exports $10 of goods and services while importing $15 a. $105 b.$100 c. $95
Imagine that the United States produces only three goods: apples, bananas, and carrots. The quantities produced and the prices of the three goods are listed below: Goods Apples Bananas Carrots Quantities Produced Prices ($) 7 2.00 10 24 1.00 1.50 Instructions: Round your answers to two decimal places. a. U.S. GDP is: $ b. Suppose that a drought hits the state of Washington. This drought causes the quantity of apples produced to fall to 4. Assuming that all prices remain constant, the new U.S. GDP is: $ c. Assume, once again, that the quantities produced and the prices of the three goods are as listed in the table. Now, given this situation, carrot sellers decide that the price of carrots is too low, so they agree to raise the price. If the U.S. GDP is $70.00, the new price of carrots is: $ per carrot.