The economy of Sumer produces only three products: rice, pajamas, and beer. The base year is 2018. The quantities and prices ofthese products in 2018 and 2019 are shown in the table below.2018Price$5RicePajamasBeerTotalQuantity46016095ItemRicePajamasBeerTotal15Quantity20$$2018Nominal GDP$d. The value of the CPI for 2019 is2018 PriceQuantity520175100a. Complete the table above. Calculate the nominal and real GDPs for the two years and enter the values in the table below.2019$$Nominal GDPReal GDPb. The value of the GDP deflator for 2019 isAnswer to one decimal place.c. Supposing the average inhabitant of Sumer consumes 10 units each of beer and rice and 5 units of pajamas each year, complete thefollowing table.2018 Basket costPrice$5.714232019 PriceAnswer to one decimal place.< PrevSearch2019Nominal GDP$2019 Basket cost13 of 14wwwPrice$515SAMSUNG20Next >$Real GDP4

Nominal GDP measures the market value of all final goods and services produced in an economy during…

Answered: The economy of Sumer produces only…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

K The monthly market basket for consumers consists of pizza, t-shirts, and rent. The table below shows market basket quantities and prices for the base year (Year 1) and in the following year. Product Pizza Base Year (Year 1) Quantity Price in the Price in Base Year Year 2 20 $2.50 $3.13 T-Shirts 4 $10.00 $9.00 Rent 1 $450.00 $495.00 In Year 1, the CPI for the economy is (Round both answers to one decimal place.) In Year 2, the CPI for this economy is
1. Refer to the information in the table. Using 2001 as the base year, Compute CPI in 2003 * 145 255 183 220 2. Refer to the information in the table. Compute the percentage change in CPI between 2001 and 2003 * 120% 83% Table 1 Sami spent all his income in 2001 and 2003 on the following market basket: 2001(Base year) Quantity 2000 2003 Price Quantity 1250 Item Price Food $1 $2 $1500 $80 Housing 4 $500 3 |Clothing 40 $50 50 155 45 3. Refer to the information in the table. Sami's nominal income in 2001 is equal to_ 11,000 13,200 6,000 2,044 4. Refer to the information in the table, Sami's real income in 2003 is equal to 5,000 1,303 6,000 11,000
4. In a simple economy, people consume only 2 goods, food and clothing. The market basket of goods used to compute the CPI consists of 50 units of food and 10 units of clothing. Food Clothing 2021 price per unit $4 $10 2022 price per unit $6 $20 (1) What is the cost of basket in each year? (2) Compute CPI in each year using 2021 as base year.
- The table below pertains to Greenland, an economy in which the typical consumer's basket consists of 150 Boxes of Apples and 200 Boxes of Bananas. Year Price of Apple Price of Bananas 2018 $15 per Box $12 per Box 2019 $14 per Box $13 per Box 2020 $17 per Box $18 per Box Referring to the above table compute the followings:(The base Year 2018). - The cost of the basket in 2018,2019,2020. The CPI for 2018,2019,2020. - The Inflation Rate in 2020.
Discuss how does the GDP relate to CPI, and how the GDP and CPI contribute toinflation. Write a short report with NO more than 400 words. You should relate the findings based on the line graphs of the GDP and CPI for Ethiopia and Germany, attached in the images.
5. Real versus nominal GDP Consider a simple economy that produces two goods: beers and seltzers. The following table shows the prices and quantities of the goods over a three-year period. Year 2018 2019 2020 Year 2018 2019 2020 Price Quantity (Dollars per beer) (Number of beers) 3 210 150 125 2 3 Beers Use the information from the preceding table to fill in the following table. From 2019 to 2020, nominal GDP The inflation rate in 2020 was Nominal GDP Real GDP (Dollars) (Base year 2018, dollars) GDP Deflator decreased Price (Dollars per seltzer) 4 1 4 4 and real GDP Seltzers Quantity (Number of seltzers) 180 200 180 increased Why is real GDP a more accurate measure or an economy's production than nominal GDP? Real GDP is not influenced by price changes, but nominal GDP is. Real GDP includes the value of exports, but nominal GDP does not. Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not.
1. In Canada, the reference base period for the CPI is 2002. By 2014, prices had risen by 25.2 percent since the base period. The inflation rate in Canada in 2015 was 1.1 percent. Calculate the CPI in Canada in 2015. 2. The base year is 2012. Real GDP in 2012 was $15 trillion. The GDP price index in 2015 was 105, and real GDP in 2015 was $16 trillion. Calculate nominal GDP in 2012 and in 2015 and the percentage increase in nominal GDP from 2012 to 2015.
please help me
For the next question assume that consumers in an economy only purchase two products, tablets and sushi. The following table provides the quantities purchased in the base year, 2007, and prices in 2007 and 2018. Base Year Price Product Quantity (2007) 2018 Price Tablets 10 25 50 Sushi 40 10 15 The CPI in the base year is Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 200 b 300 C 100 d 400
In 1980 the price of a microwave oven was $450 and CPI was 82. Today the price of a microwave overn is $100 and CPI is 259. Round to two decimal places. What is the 1980 price of a microwave oven measured in todays dollars? S What is todays price of a microwave oven measured in 1980 dollars? $
a) Discuss the problems with the Consumer Price Index. b) Consider a nation obsessed with Coke Studio. All they produce and consume are DVDs and karaoke mics, in the following amounts: Karaoke Mics DVDs Quantity Price Quantity Price 2020 10 Rs.4,000 30 Rs.1,000 2021 12 6,000 50 1,200 Using a method similar to the CPI, compute the percentage change in the overall price level. Use 2020 as the base year and fix the basket at 3 DVDs and 1 karaoke mic. Using a method similar to the GDP deflator, compute the percentage change in the overall price level. Again, use 2020 as the base year. Is the inflation rate in 2021 the same using the two methods? Explain why or why not. kindly solve all the parts
B. Consumer Price Indexes (CPI) are index numbers and are used to compare the evolution of prices over the years. The rate of change of the CPI is known as the inflation (or deflation) rate. The following table provides the CPI for two different base years (a) and (b). Complete the blanks in CPI (a) and CPI (b) by creating two spliced indexes: CPI (b) Year 2010 2011 2012 2013 2014 2015 CPI (a) (base 2006) 108.589 112.059 (base ) Inflation rate (a) Inflation rate (b) 100 102.446 103.889 103.732 103.213 Compute inflation rate in the economy (rate of change of CPI) by using both the index (a) and (b). Is there any difference in the results? _____since they CPI (a) and CPI (b) are showing. evolution of prices. Is there any year with deflation?

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS