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

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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
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.
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.
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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? $
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 2016 2017 2018 Year 2016 2017 2018 Price (Dollars per beer) 2 2 4 Beers Nominal GDP (Dollars) Quantity (Number of beers) 295 Use the information from the preceding table to fill in the following table. From 2017 to 2018, nominal GDP The inflation rate in 2018 was 125 120 Price (Dollars per seltzer) 4 Real GDP (Base year 2016, dollars) GDP Deflator 4 4 , and real GDP Seltzers Quantity (Number of seltzers) 195 Why is real GDP a more accurate measure of an economy's production than nominal GDP? 225 180 Real GDP is not influenced by price changes, but nominal GDP is. O Real GDP does not include the value of intermediate goods and services, but nominal GDP does. O 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…
K Quantity Price Price Item (2011) (2011) (2012) Salt 2 $1.00 $2.00 Bread 20 $2.50 $3.00 The data in the table above shows the consumption by families in a small (poor) economy. The families salt and bread. The reference base period is 2011. The CPI in 2012 is OA. 23.1 B. 18.8 O c. 100. 00 D. 123.1 e Time Remaining: 00:57:50

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