The following table reports 2018 transactions that occurred in the United States. Prices in 2018 and 2016 (base year) are also given. Use the worksheet to answer questions below. Please make sure to show any formulas you used, calculations and your work. i. Which of the listed transactions should not be used in U.S. GDP calculation? Please include one reason for each transaction you think should not be included in U.S. GDP calculation. ii. Based on the transactions you decided to include in U.S. GDP, calculate nominal GDP in 2018. ii. Based on the transactions you decided to include in U.S. GDP, calculate real GDP in 2018. iii. Calculate the GDP Deflator in 2018. Price per Unit in Price per Unit Quantity in Item 2016 in 2018 2018 (Base Year) Bottles Wine from France $15 $20 10 Boxes of Cereal produced in Battle Creek. MI $5 $4 20 Used Tires $12 $15 5 Shares of Twitter Stock $8 $10 15 Hours of Swimming Lessons at the Y in Kalamazoo. MI $4 S6 8 GDP deflator in 2018 was....

The following table reports 2018 transactions that occurred in the United States. Prices in 2018 and 2016 (base year) are also given. Use the worksheet to answer questions below. Please make sure to show any formulas you used, calculations and your work. i. Which of the listed transactions should not be used in U.S. GDP calculation? Please include one reason for each transaction you think should not be included in U.S. GDP calculation. ii. Based on the transactions you decided to include in U.S. GDP, calculate nominal GDP in 2018. ii. Based on the transactions you decided to include in U.S. GDP, calculate real GDP in 2018. iii. Calculate the GDP Deflator in 2018. Price per Unit in Price per Unit Quantity in Item 2016 in 2018 2018 (Base Year) Bottles Wine from France $15 $20 10 Boxes of Cereal produced in Battle Creek. MI $5 $4 20 Used Tires $12 $15 5 Shares of Twitter Stock $8 $10 15 Hours of Swimming Lessons at the Y in Kalamazoo. MI $4 S6 8 GDP deflator in 2018 was....

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

The following table reports 2018 transactions that occurred in the United States. Prices in 2018 and 2016 (base year) are also given.
Use the worksheet to answer questions below. Please make sure to show any formulas you used, calculations and your work.
i. Which of the listed transactions should not be used in U.S. GDP calculation? Please include one reason for each transaction you think should not be included in U.S. GDP calculation.
ii. Based on the transactions you decided to include in U.S. GDP, calculate nominal GDP in 2018.
ii. Based on the transactions you decided to include in U.S. GDP, calculate real GDP in 2018.
iii. Calculate the GDP Deflator in 2018.
Price per
Unit in
Price per Unit Quantity in
Item
2016
in 2018
2018
(Base Year)
Bottles Wine from France
$15
$20
10
Boxes of Cereal produced in Battle Creek, MI
$5
$4
20
Used Tires
$12
$15
5
Shares of Twitter Stock
$8
$10
15
Hours of Swimming Lessons at the Y in
$4
$6
8
Kalamazoo, MI
GDP deflator in 2018 was...
Answer:

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