Table 24-4. Will's expenditures on food for three consecutive years, along with other values, are presented in the following table. Expenditures on food Consumer price index efer to Table 24-4. If the nominal interest rate was 8 percent in Year 2, then a. the real interest rate in Year 2 was 3 percent. Ob. Will's Year 1 food expenditures in Year 3 dollars amount to $6,200. Oc the real interest rate in Year 2 was 4 percent. Od. Will's Year 1 food expenditures in Year 2 dollars amount to $5,800. Year 3 1 2 $5,000 $5,800 $6,600 160.0 168.0 X

Table 24-4. Will's expenditures on food for three consecutive years, along with other values, are presented in the following table. Expenditures on food Consumer price index efer to Table 24-4. If the nominal interest rate was 8 percent in Year 2, then a. the real interest rate in Year 2 was 3 percent. Ob. Will's Year 1 food expenditures in Year 3 dollars amount to $6,200. Oc the real interest rate in Year 2 was 4 percent. Od. Will's Year 1 food expenditures in Year 2 dollars amount to $5,800. Year 3 1 2 $5,000 $5,800 $6,600 160.0 168.0 X

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 4 Refer to the table. The value of the price index in 2020 is Nominal Real Price Year GDP GDP Index 2018 $200,000 100 2019 $200,000 50 2020 $200,000 $400,000 0.5 10 50 100 200 OO O O O
3. Consider an economy that only produces mittens. In Year 1, 4000 pairs of mittens are produced and the price is $5 per pair. In the Year 2, 5000 pairs of mittens are produced and the price is $7 per pair. In Year 3, 7000 pair of mittens are produced and the price is $9 per pair. Use Year 1 as the base year. What is the nominal GDP for each year? What is the real GDP for each year? What is the GDP deflator for each year? What is the percentage growth rate of real GDP from year 2 to year 3? What is the inflation rate (as measured by the GDP deflator) from year 2 to year 3?
5. The income effect of a price change a) is always positive. b) is always negative. c) may be positive or negative. d) is associated with a change in nominal income.
D Question 36 Assume that an economy's actual output increased over a decade but it experienced deflation throughout that entire time. Which of the following statements is correct? o The country's nominal GDP increased, but nothing can be stated with certainty regarding any change in real GDP. o The country's real GDP increased, and its nominal GDP stayed the same. O The country's real GDP increased, but nothing can be stated with certainty regarding any change in nominal GDP. o The country's real GDP increased, and its nominal GDP decreased. o The country's nominal GDP decreased, but nothing can be stated with certainty regarding any change in real GDP. Question 37 Decreases in the costs of key inputs cause the AS curve to shift to the right. O True O False
Figure 13-4 Price level LRAS LRAS SRAS, SRAS 112 10 AD AD 110 Real GDP (tritlions of dollars) 121 Refer to Figure 13-4. In the figure above LRAS, and SRAS, denote LRAS and SRAS in year 1, while LRAS, and SRAS, denote LRAS and SRAS in year 2. Given the economy is rate in potentlal GDP in year 22 Select one: Oa 10% O b. 1296 O d. 9.196
Typed and correct answer please. Inll
Question 21 I NGDP in the base year and RGDP in the current aro equal, then Oa There has been inflation or deflation Ob. There has been deflation only Oc There has been inflation only Od The GDP deflator must be equal to 1
8:51 ibrahim 1361 Ecnomics - Saved Q.3 The following table shows ominal GDP and an propriate price index for a -- oup of selected years. mpute real GDP. Indicate in ch calculation whether you inflating or deflating the minal GDP data. Nominal GDP, P Index Real GDP, Year Billions = 100) Billions 1968 %24 909.8 2.01 2$ 1978 2293.8 40.40 $4 1 988 1 998 5100.4 66.98 $ 8793.5 85.51 2$ 2008 14,441.4 108.48 $. Answer: Q.4 Calis and notifications will vibrate flower bulbs sells its annual B I U A 0o
QUESTION 7 Keisha's income was $52,342 in 2011 and $64,983 in 2021. If the CPl rose from 225 to 271 between 2011 and 2021, which of the folowing is true? OA The purchasing power of Keisha's income remained constant between 2011 and 2021. O B. There was deflation between 2011 and 2021. OC The purchasing power of Keisha's income increased between 2011 and 2021. O D. The purchasing power of Keisha's income decreased between 2011 and 2021. O E. Keisha's income in 2011 was equivalent to her income in 2021 because she was able to purchase the same amount of goods and services.
8. If both nominal GDP and the price index are rising, is evident that a) real GP is constant. b) real GDP is rising. c) real GDP is declining.
4. Sam saved $5,000 from his income last year and decided to deposit it at a bank in a saving account. At the end of the year, his deposit account balance reached a total value of $5,200. During the year, the consumer price index rose from 250 to 265. a. Calculate Sam's nominal interest rate. Show your work. I b. Calculate Sam's real interest rate. Show your work. Explain whether Sam experienced an increase or decrease in the purchasing power of his saving over the year. c. Suppose in the following year, the CPI rises to a value of 275. Calculate the nominal interest rate that would allow Sam to maintain the purchasing power of his deposit over this second year. Show your work.