The nominal GDP will increase by 6% when O real GDP decreases by 10% and GDP deflator increases by 4%. real GDP an increases by 5% and GDP deflator decreases by 1%. real GDP a decreases by 3% and GDP deflator increases by 3%. real GDP decreases by 4% and GDP deflator increases by 10%. real GDP an increases by 9% and GDP deflator increases by 3%.

The nominal GDP will increase by 6% when O real GDP decreases by 10% and GDP deflator increases by 4%. real GDP an increases by 5% and GDP deflator decreases by 1%. real GDP a decreases by 3% and GDP deflator increases by 3%. real GDP decreases by 4% and GDP deflator increases by 10%. real GDP an increases by 9% and GDP deflator increases by 3%.

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 Suppose an economy has four sectors: Mining, Lumber, Energy, and Transportation. Mining sells 15% of its output to Lumber, 60% to Energy, and retains the rest. Lumber sells 5% of its output to Mining, 50% to Energy, 20% to Transportation, and retains the rest. Energy sells 20% of its output to Mining, 15% to Lumber, 25% to Transportation, and retains the rest. Transportation sells 10% of its output to Mining, 20% to Lumber, 50% to Energy, and retains the rest. a. Construct the exchange table for this economy. b. Find a set of equilibrium prices for this economy. a. Complete the exchange table below Distribution of Output from: Mining Lumber Energy Transportation Purchased by: Mining Lumber Energy Transportation (Type integers or decimals.) b. Denote the prices (that is, dollar values) of the total annual outputs of the Mining, Lumber, Energy, and Transportation sectors by PM. PL. PE. and PT, respectively If pr = $100, then PM = $ PL = 9 (Round to the nearest dollar as needed.) and PE
What would be the correct answer?
2. True or False? When we measure GDP, it's always better to measure aggregate expenditure rather than aggregate production. A. True B. False 3. What accounts for the difference in real GDP vs. nominal GDP for the same year? A. Month of the year measurement is taken in B. Which government agency reports the number C. What price level is used D. Whether exports exceed imports that year or vice versa 4. Which U.S. federal agency produces GDP data for the U.S.? A. BEA B. CIA C. FBI D. FDA 5. Real GDP rose from $3 trillion to $3.1 trillion in one year. What's the GDP growth rate? A. 0.1% B. 3.2% C. 3.3% D. 10% 6. In our model of production for studying the GDP, what does lower-case y stand for? A. Productivity parameter B. Per capita GDP C. Marginal GDP D. Per capita capital
5
2. < Previous Nex Determine whether the following scenarios would increase, decrease or have no impact on potential GDP in the country of Questville: A. Questville 's workers have more and better capital available B. Access to capital like machinery for workers is reduced C. Houscholds across Questville see a decline in home prices, reducing household wealth 1. No impact on potential GDP 2 2. Increase potential GDP 23. Decrease potential GDP
The three ways of measuring Gross Domestic Product are the __________ approach, the ________ approach, and the __________ approach. 3 Select one: a. real GDP, nominal GDP, potential GDP b. income, expenditure, value-ad3ded c. expenditure, income, real GDP
Consider an economy that produces only chocolatebars. In year 1, the quantity produced is 3 barsand the price is $4 per bar. In year 2, the quantityproduced is 4 bars and the price is $5 per bar.In year 3, the quantity produced is 5 bars and theprice is $6 per bar. Year 1 is the base year.a. What is nominal GDP for each of these three years?b. What is real GDP for each of these years?c. What is the GDP deflator for each of these years?d. What is the percentage growth rate of real GDPfrom year 2 to year 3?e. What is the inflation rate as measured by the GDPdeflator from year 2 to year 3?f. In this one-good economy, how might you haveanswered parts (d) and (e) without first answeringparts (b) and (c)?
In 2019, consumer spending was $16,000; investment spending was $4,000; and net exports were –$600. If GDP in 2019 was $23,000, government purchases of goods and services were _________. a. $3,000 b. $3,500 c. $3,600 d. $2,600
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13.Give a scenario in which nominal GDP increases but real GDP stays the same. 14.Give a scenario in which real per capita GDP decreases but real GDP increases. 15.Give a scenario in which real per capita GDP increases but quality of life decreases.
Both!!!
If the GDP deflator rose by 10% last year and nominal GDP grew by 7%, then real GDP must have:a. fallen by 3%. b. risen by 17%.c. fallen by 17%. d. risen by 3%