three-year period. Consider a simple economy that produces two goods: plastic cups and donuts. The following table shows the prices and quantities of the goods over a Plastic cups Donuts Price Quantity Price Quantity Year (Dollars per plastic cup) (Number of plastic cups) (Dollars per donut) (Number of donuts) 2019 2 295 2 180 2020 2 140 210 2021 145 160 Use the information from the preceding table to fill in the following table. Real GDP Year Nominal GDP (Dollars) (Base year 2019, dollars) GDP Deflator 2019 2020 2021 From 2020 to 2021, nominal GDP , and real GDP

three-year period. Consider a simple economy that produces two goods: plastic cups and donuts. The following table shows the prices and quantities of the goods over a Plastic cups Donuts Price Quantity Price Quantity Year (Dollars per plastic cup) (Number of plastic cups) (Dollars per donut) (Number of donuts) 2019 2 295 2 180 2020 2 140 210 2021 145 160 Use the information from the preceding table to fill in the following table. Real GDP Year Nominal GDP (Dollars) (Base year 2019, dollars) GDP Deflator 2019 2020 2021 From 2020 to 2021, nominal GDP , and real GDP

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question3 The Desert Republic produces only sheep and oil. The base year is 2010 and the table below gives the quantities produced and the market prices. 2010 Price Sheep Oil $104 per sheep $28 per barrel Quantities 10.193 sheep 13,306 barrels 2020 Sheep Oil $126 per sheep $57 per barrel 12,884 sheep 11.148 barrels Calculate nominal GDP in 2020
Consider a simple economy that produces two goods: apples and envelopes. The following table shows the prices and quantities of the goods over a three-year period. Year Apples Envelopes Price Quantity Price Quantity (Dollars per apple) (Number of apples) (Dollars per envelope) (Number of envelopes) 2016 2 115 5 175 2017 4 150 2 180 2018 1 100 2 160 Use the information from the preceding table to fill in the following table. Year Nominal GDP (Dollars) Real GDP (Base year 2016, dollars) GDP Deflator 2016 2017 2018 From 2017 to 2018, nominal GDP: (a. increased, b. decreased), and real GDP (a. increased, b. decreased) . The inflation rate in 2018 was: (a. -47.5%, b. -0.5%, c. 47.5%, d. 52.5%, e. 190.5%) . Why is real GDP a more accurate measure of an economy's production than nominal GDP? a. Real GDP includes the value of exports, but nominal GDP does not.…
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Question # 02 Use the information given and show in a table format how value added method is used to Calculate GDP. 1. A forester chops down 200 trees and sells them @ N$50 each to the coal factory on a farm. The coal factory processes these trees into coals and sells the coal @ N$20 000 to the coal wholesaler's. The coal wholesaler's goes to the market and sell 500 bags of coal's @N$100 each to pick n Pay. Pick n Pay sells the 500 bags of coal's @ N$150 each to its customers. According to this example, how much value added do the coals contribute to the GDP?
5. Real versus nominal GDP Consider a simple economy that produces two goods: cupcakes and erasers. The following table shows the prices and quantities of the goods over a three-year period. Year 2017 2018 2019 Year 2017 2018 2019 Cupcakes Price (Dollars per cupcake) 1 2 Quantity (Number of cupcakes) 110 140 100 Use the information from the preceding table to fill in the following table Nominal GDP Real GDP (Dollars) (Base year 2017, dollars) Price (Dollars per eraser) 1 Erasers GDP Deflator Quantity (Number of erasers) 180 210 190
Consider an economy that produces and consumes final products: bread and automobiles. In the following table are data for two different years. Good Year Quantity Price Quantity 2010 Price 2010 $60,000 $20 2000 2000 $50,000 $10 Automobiles 100 120 Bread 500,000 400,000 a. Compute the nominal GDP for each year. b. Compare the numbers you get for each year. If we use GDP as a measure of production capacity of an economy in a certain year, can we infer the economy is more productive in one year than the other? What is your concern when you compare the numbers directly?
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Question 2 Suppose the information in the table is for a simple economy that produces and consumes only four c and services: textbooks, hamburgers, shirts and cotton. Base Year Product Textbooks = Shirts Cotton 2011 90 Hamburgers 75 50 100 O Quantity Price 2011 W Quantity $50 100 2 X 100 50 • Calculate the nominal GDP for 2011. 6,230 30 0.80 800 • Calculate the nominal GDP for 2012. 7,930 2012 Calculate the nominal GDP for 2013. 8,479 Price $60 12 25 0.60 Quantity 100 120 2013 65 120 Price $65 12.15 25 0.70
Below are some data from the productions of milk and honey. a) Compute nominal GDP, real GDP, and the GDP deflator for each year, using 2010 as the base year. b) Compute the percentage change (growth rate) in nominal GDP, real GDP, and the GDP deflator in 2011 and in 2012 from the preceding year.
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Briefly explain the three primary uses of GDP data. Give example from Pakistan’s economy if possible.
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