The price and quantity data for Year 1 and Year 2 are as follows: Bread Butter 100 50 Year 1 Quantity Year 1 Price 1 1 Year 2 Quantity 80 4 120 Year 2 Price 1.25 1.60 What is the ratio of real GDP in year 2 to real GDP in year 1, using year 1 as the base year? Answer Choices: a. 1.254 b. 1.354 c. 1.434 d. 1.534

The price and quantity data for Year 1 and Year 2 are as follows: Bread Butter 100 50 Year 1 Quantity Year 1 Price 1 1 Year 2 Quantity 80 4 120 Year 2 Price 1.25 1.60 What is the ratio of real GDP in year 2 to real GDP in year 1, using year 1 as the base year? Answer Choices: a. 1.254 b. 1.354 c. 1.434 d. 1.534

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter7: Inflation

Section: Chapter Questions

Problem 5SQP

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Transcribed Image Text:The price and quantity data for Year 1 and Year 2 are as follows: Bread 50 1 Butter 100 Year 1 Quantity Year 1 Price Year 2 Quantity Year 2 Price 80 120 1.60 1.25 What is the ratio of real GDP in year 2 to real GDP in year 1, using year 1 as the base year? Answer Choices: 1.254 b. 1.354 1.434 d. 1.534 a. C. Acivate Windcys
Refer to the below tale for the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year. Give the nominal GDP for year 4 ( Note: that the answer should be the dollar sign and a number with no space between the two.) Units of Price Year output per unit 16 $2 20 3 30 36 40 3 456 12345
A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2015 . Prices and Quantities Year Price ofMovies Quantity of Movies Price of Popcorn Quantity ofPopcorn 2014 $10.00 500 $5 1000 2015 $11.00 600 $4 900 2016 $12.00 650 $5 950 2017 $12.00 625 $6 925 Refer to Table 23-10. What was this country’s real GDP in 2016? a. $11,250 b. $12,550 c. $10,575 d. $10,950
Year 2019 Product Quantity Apples 10 Bananas 17 Your Answer: Average Price per Unit Answer $5 $20 ' Year 2020 Quantity 6 7 Average Price per Unit Using year 2020 as the base year, the economy's consumer price index (CPI) in year 2019 is (Your answer should include the first decimal point, if any.) $16 $24
Attendance at Orlando's newest Disneylike attraction, Lego World, has been as follows: Guests (in thousands) 58 104 155 Quarter Winter Year 1 Spring Year 1 Summer Year 1 Fall Year 1 Winter Year 2 Spring Year 2 Based on the given attendance, the seasonal indices for each of the seasons are (round your responses to three decimal places): Index 77 63 83 Fall Season Winter Spring Summer Quarter Summer Year 2 Fall Year 2 Winter Year 3. Spring Year 3 Summer Year 3 Fall Year 3 Guests (in thousands) 120 52 94 146 210 99
A hypothetical country of Narnia produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown in the following table. The base year is 2017. Year 2016 2017 2018 2019 Price (Dollars per movie) 7.6% 7.5% Movies 7.2% 7% 10.00 11.00 12.00 12.00 Quantity Quantity (Movies) (Dollars per bag) (Bags) 500 600 650 625 Popcorn Refer to Table 23-5. What was the rate of inflation for Narnia in 2019? (Hint: round-off to the nearest decimal point) Price 5 4 5 6 1,000 900 950 925
A number of statistics are computed to measure the price level, such as the GDP deflator and the CPI. The choice of which of these measures to use depends in many cases on the specific question in which you are interested. For each of the following situations, state whether the CPI or GDP deflator is a more appropriate measure to use and explain why the statistic is preferred. a. You are interested in looking at the impact of higher prices of imported oil in the overall cost of living. b. The government is interested in whether increases in defense spending are affecting the price level. c. An economic consulting firm is investigating the impact on the aggregate price level of more computers and electronic technology used in production.
Suppose the residents of country P consume only peaches and pecans. The table below shows the prices and quantity of peaches and pecans consumed for two consecutive years. Note that all prices are per bushel. Suppose that the typical consumer basket consists of 10 bushels of peaches and 15 bushels of pecans. Assume 2000 is the base year. Peaches Pecans Year Price Quantity Price Quantity 2000 $11 10 $6 10 2001 $9 20 $10 10 What is the consumer price index for 2001? a. 120 b. 240 c. 200 d. 100
Question 20 Revisit Later Q. "The National Statistical Office, which is under the Union Ministry of Statistics & Programme Implementation, has released its estimates for gross domestic product (GDP) in the first quarter (Q1) of this fiscal year, 2022-23. The headline is that GDP at constant prices in the first quarter showed 13.5 per cent growth year on year. This is a deceptively high level, given the base effect." The following options are given to explain why this number is deceptively high. i. Most expectations were for quarterly GDP growth in the 15-16 per cent range year on year. ii. Given the base effect, the growth rate of 13.5 percent is in fact a clear disappointment. iii. It needs to be remembered that the equivalent quarter of the previous year, April-June 2021, was when the devastating second wave of the coronavirus epidemic was raging through the country. iv. Even though there was no national lockdown as draconian as that observed during the first wave in 2020, activity…
... ... Using the data In the table below related to nominal GDP and the chaln-welghted price deflators for gross domestic product (e.g., price Index for GDP), answer the followIng questions: Nominal GDP (in Billions) Chain-weighted Price Deflators (Index) for GDP 2012 = 100 (Base Year) Year 78.1 2001 10,128 10,469 82.6 2004 11,685 84.8 12,422 87.4 13,178 90.1 9007 13,808 92.5 14,291 600 2010 14,527 96.1 2011 15,518 2012 16,163 0 00 101.8 16,768 2014 2015 18,037 104.6 2016 18,754 105.7 2017 19,543 107.8 20,612 21,433 112.3 Instructlons: For parts a, c, d, and e, enter your responses as a percentage rounded to one deClmal place. For part b, round your response to the nearest billion. a. Calculate the percentage change In nominal GDP between 2016 and 2017. b. Calculate real GDP In 2017 at prices of 2016. 24 C. Calculate the percentage change in real GDP between 2016 and 2017. d. What Is the percentage change In nomlnal GDP between 2016 and 2017 attributed to changing prices? e. What Is…
Suppose the residents of country P consume only peaches and pecans. The table below shows the prices and quantity of peaches and pecans consumed for two consecutive years. Note that all prices are per bushel. Suppose that the typical consumer basket consists of 10 bushels of peaches and 15 bushels of pecans. Assume 2000 is the base year. Peaches Pecans Year Price Quantity Price Quantity 2000 $11 10 $6 10 2001 $9 20 $10 10 What was the inflation rate in 2001? a. 20 percent b. 10 percent c. 8 percent d. 16.7 percent
Use the table below to answer the question. 2018 (Base Year) Price $3 $3 Quantity 14 12 2019 Price $6 S6 |Quantity Tomato Tobacco 7 Habitats of Virginia produce and consume only two products, tomatoes and tobacco. Total quantities of output and prices (per unit) of two products in 2018 and 2019 are shown on the table above. The base year is 2018. Using the base-year method, real GDP in 2019 is $ (Answer in whole number without $ sign or decimal: e.g. 12)