(1) The following table gives some figures from a forecast of real GDP and population done in2009.<Real GDP 2010 (billions)<| $9,558.6Real GDP 2011 (billions)$9,729.1¹APopulation 2010 (millions)Population 2011 (millions)(i) According to the forecast, approximately how much price inflation will there be between2010 and 2011?279.1↔281.9¹(ii) What is the per capita GDP projected to be in 2010 and 2011?ܒܢ(iii) Compute the forecast rate of change in real GDP and per capita real GDP between 2010 and2011.(iv) If you buy a new car, the entire purchase is counted as consumption in the year in whichyou make the transaction. Explain briefly why this is in one sense an “error” in nationalincome accounting. How is the purchase of a car different from the purchase of a pizza?How could you correct this error?0

Real GDP is a metric that takes inflation into account and examines the rate at which all goods and…

The following table gives some figures from a forecast of real GDP and population done in 2009.< Real GDP 2010 (billions)< Real GDP 2011 (billions) $9,558.6 $9,729.1 Population 2010 (millions) 279.1 Population 2011 (millions) 281.9¹ (i) According to the forecast, approximately how much price inflation will there be between 2010 and 2011? (ii) What is the per capita GDP projected to be in 2010 and 2011? (iii) Compute the forecast rate of change in real GDP and per capita real GDP between 2010 and 2011. (iv) If you buy a new car, the entire purchase is counted as consumption in the year in which you make the transaction. Explain briefly why this is in one sense an "error" in national income accounting. How is the purchase of a car different from the purchase of a pizza? How could you correct this error?

The following table gives some figures from a forecast of real GDP and population done in 2009.< Real GDP 2010 (billions)< Real GDP 2011 (billions) $9,558.6 $9,729.1 Population 2010 (millions) 279.1 Population 2011 (millions) 281.9¹ (i) According to the forecast, approximately how much price inflation will there be between 2010 and 2011? (ii) What is the per capita GDP projected to be in 2010 and 2011? (iii) Compute the forecast rate of change in real GDP and per capita real GDP between 2010 and 2011. (iv) If you buy a new car, the entire purchase is counted as consumption in the year in which you make the transaction. Explain briefly why this is in one sense an "error" in national income accounting. How is the purchase of a car different from the purchase of a pizza? How could you correct this error?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Country X Country Y Country Z 1 YEAR AGO 1 YEAR AGO 1 YEAR AGO INDICATOR NOW NOW NOW Unemployment rate 7.5% 5.6% 7.9% 9.3% 5.5% 5.4% GDP growth rate 5.1% 1.9% 0.3% -1.2% 3.5% 3.7% Inflation rate 1.1% 0.2% 2.1% 0.0% 2.4% 2.3% 4. Which country would you want to start a new business in? Why? Country would be the best option to start a new business in because... 5. Describe how the economic indicators affect one another. If GDP increases the effect on unemployment will be an (increase/decrease) because... This change in unemployment will cause inflation to (increase/decrease) because...
Please explain how the Consumer Price Index (CPI) is calculated and critically evaluate its merits as a measure of inflation.
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Mr. Ali decided to buy some sandwich and burger for his family. As he found the price of sandwich is more than burger, he decided to buy more burger and less sandwich. This changes in demand of these products can be best measured by O a. Cross elasticity of demand O b. Product elasticity of demand O c. Price elasticity of demand O d. Income elasticity of demand
Calculate the inflation rate using the GDP deflator based on the Laspeyres, Paasche, and chain- weighted indexes of GDP (use the approximate formula).
a) Consider the following consumption data for the economy of Ruthenia: Quantity Prices 2021 $5.55 $420 $12500 $0.36 Item Price 2022 $4.65 Pizzas 1500 Computers 120 $480 $15200 $0.44 $35 $47 Cars 39 Apples Massages Accounting Services 7800 420 $31 190 Calculate the CPI for both years as well as the inflation rate. $49
The table below contains data for the country of Greenland, which produces only Apples and Bananas. The base year is 2017. Quantity of Price of Apples Quantity of Year Price of Price of waffles Apples Bananas Bananas 2017 $12 60 $ 4 250 2018 14 75 6 280 2019 17 90 8 300 2020 19 100 10 325 - Compute: nominal GDP, real GDP, GDP deflator, and Inflation rate in 2020.
The following table shows the average nominal interest rates on six-month Treasury bills between 2014 and 2018, which determined the nominal interest rate that the U.S. government paid when it issued debt in those years. The table also shows the inflation rate for the years 2014 to 2018. (All rates are rounded to the nearest tenth of a percent.) Year Nominal Interest Rate Inflation Rate (Percent) (Percent) 2014 0.1 1. 6 2015 0.2 0.1 2016 0.5 1.3 2017 1.1 2.1 2018 2.1 2.4 On the following graph, use the orange points (square symbol) to plot the nominal interest rates for the years 2014 to 2018. Next, use the green points (triangle symbol) to plot the real interest rates for those years. According to the table, in which year did buyers of six-month Treasury…
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator. The GDP deflator for this year is calculated by dividing the value of all goods and services produced in the economy this year using_________ by the___________using___________and multiplying by 100. However, the CPI reflects only the prices of all goods and services____________.
Here are some recent data on the US consumer price index: Year CPI Year CPI Year CPI 2016 240.0 2011 224.9 2006 201.6 2015 237.0 2010 218.1 2005 195.3 2014 236.7 2009 214.5 2004 188.9 2013 233.0 2008 215.3 2003 184.0 2012 229.6 2007 207.3 2002 179.9 Compute the inflation rate of each year 2003-2016 and determine which were years of inflation. In which years did deflation occur? In which years did disinflation occur? Was there hyperinflation in any year?
year 1974 nominal gdp is 2000, gdp deflator is 100, year 1975 nominal gdp is 3000 and gdp deflator is 120, year 1976 nominal gdp is 3750 and gdp deflator is 150, year 1977 nominal gdp is 6,000 and gdp deflator is 200. This economy experienced inflation from 1974 to 1975, from 1975 to 1976 to 1977.
Using the figures provided in Table 1, what is Real Per Capita GDP, to the nearest whole dollar, for 2005? 40.9% $4,089.3 $40,894 $408,935 Can not be determined with the information provided Table 1-Nominal GDP and Real GDP Nominal Real GDP Year GDP GDP Population Deflator 1997 6,240 6,500 233 96 1998 6,887 7,100 239 97 1999 7,791 7,950 242 98 2000 8,750 8,750 250 100 2001 8,415 8,250 256 102 2002 9,450 9,000 264 105 2003 10,746 9,950 275 108 2004 12,096 10,800 286 112 2005 13,804 11,900 291 116 2006 14,735 300 120 2007 (est.) 16,875 13,500 310 125 GDP Figures in Billions Population Figures in Millions