The accompanying table shows data for real and nominal GDP for a hypothetical economy over several years. a. Calculate the GDP Deflator for 2017-2022. Enter the values in the accompanying table. b. Compute the total percentage change in the nominal GDP from 2017 to 2022. How much of this change was due to increases in prices and how much was due to changes in quantities? The total percentage change in nominal GDP from 2017 to 2022 is%. (Enter your response rounded to one decimal place.) This increase in nominal GDP was due (in part) to an increase in prices of %. (Enter your response rounded to one decimal place.) This increase in nominal GDP was due (in part) to an increase in quantities of %. (Enter your response rounded to one decimal place.) Real GDP (billions of 2016 S) 814.6 788.0 2018 826.3 845.1 2019 855.4 855.4 2020 907.8 896.0 2021 948.6 928.2 2022 993.4 960.2 (Enter your responses rounded to one decimal place.) Year 2017 Nominal GDP (billions of $) GDP Deflator

The accompanying table shows data for real and nominal GDP for a hypothetical economy over several years. a. Calculate the GDP Deflator for 2017-2022. Enter the values in the accompanying table. b. Compute the total percentage change in the nominal GDP from 2017 to 2022. How much of this change was due to increases in prices and how much was due to changes in quantities? The total percentage change in nominal GDP from 2017 to 2022 is%. (Enter your response rounded to one decimal place.) This increase in nominal GDP was due (in part) to an increase in prices of %. (Enter your response rounded to one decimal place.) This increase in nominal GDP was due (in part) to an increase in quantities of %. (Enter your response rounded to one decimal place.) Real GDP (billions of 2016 S) 814.6 788.0 2018 826.3 845.1 2019 855.4 855.4 2020 907.8 896.0 2021 948.6 928.2 2022 993.4 960.2 (Enter your responses rounded to one decimal place.) Year 2017 Nominal GDP (billions of $) GDP Deflator

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 annual output and prices of a three-good economy are shown in the table below. Quantity of Goods Year 1 Price Year 1 $6 $4 $3 Good Quarts of ice cream Bottles of shampoo Jars of peanut butter Instructions: Enter your answers as a whole number. a. What was the economy's nominal GDP in year 1? $ b. What was its nominal GDP in year 2? 3 1 3 Price Year 2 $6 $4 $3 Quantity of Goods Year 2 5 2 2
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.…
Suppose that a very simple economy produces three goods: pizzas, haircuts, and backpacks. Suppose the quantities produced and their corresponding prices for 2002 and 2006 are shown in the table: 2002 2006 Product Quantity Price $10 $15 $40 Quantity Price Pizzas Haircuts 100 120 $12 $20 $45 50 45 Backpacks 200 210 Calculate real GDP in 2006 assuming the base year is 2002. Do the same calculation assuming the base year is 2006. Are the calculations different? Why?
The annual output and prices of a 3-good economy are shown in the table below. Good Price Year 1 Quantity of Goods Year 1 Price Year 2 Quantity of Goods Year 2 Quarts of Ice Cream $5 4 $5 6 Bottles of Shampoo $3 2 $3 3 Jars of Peanut Butter $2 4 $2 3 What was nominal GDP in year 1? $ What was nominal GDP in year 2? $
[Related to Solved Problem 2.2a] Use the information in the following table to calculate nominal and real GDP for 2005 and 2012. Assume that 2005 is the base year. 2005 Nominal GDP in 2005 is $. (Round your response to two decimal places.) Real GDP in 2005 is $. (Round your response to two decimal places.) S Product Oranges Plums Haircuts Pizza Quantity 30 200 95 80 Price ilum hina $4.00 $0.50 $30.00 $9.00 Quantity 30 250 120 60 2012 Price $4.50 $0.60 $30.00 $11.25
Assume that an economy produces only lemonade and cookies. The output and prices in 2019 and 2020 are as follows: 2019 2019 Output Prices Lemonade 200 glasses $1 per glass 100 cookies $2 per cookie Cookies 2020 Output 300 glasses 2020 Prices $2 per glass 100 cookies $2 per cookie Suppose that 2019 is the base year. What is the GDP deflator in 2020? Enter its value below. Hint: GDP deflator employs quantity weights from the current year (i.e., 2020).
Homework GDP DIRECTIONS Each section below contains problems associated with a particular aspect of GDP. Use your knowledge of GDP to answer each question. You may use a calculator if needed. NOMINAL GDP AND REAL GDP 1) The following tables list GDP data for a fictional economy in two different years. Pretend this economy only produces these three items. What is the nominal GDP each year? Year 1 (Nominal GDP) Year 2 (Nominal GDP) Good Price Quantity GDP Cookies $2 50 Good Price Quantity GDP Doughnuts $5 35 Cookies $3 45 Cake $10 15 Doughnuts $7 40 ТОTAL Cake $1 25 TOTAL 2) Now calculate the real GDP for Year 2 using Year 1 as the base year. This means to use the Year 1 prices with the Year 2 quantities. Use the table to the right to fill in your Year 2 (Real GDP) Good Price Quantity Real GDP calculations. Cookies 45 Doughnuts 40 3) How much did nominal GDP for Year 2 overstate the growth in this economy? (i.e. How much larger was Year 2 nominal GDP than Year 2 real GDP?) Cake 25 TOTAL…
What is the relationship of the GDP deflator to real GDP? To make comparisons across time or across borders, one must use the notion of a GDP deflator to convert nominal GDP into real GDP for comparisons. Nominal variables are in current dollars and have price level changes such as inflation and deflation included in them. Real variables are in constant dollars due to the factoring out of price level changes using a base year and a deflator. What is the current nominal GDP for the US economy? What is the current real GDP for the US economy?
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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.
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