### Table DataThe table provided is structured to show the output and pricing of a single product over a five-year period.**Year | Units of Output | Price Per Unit** 1 | 3 units | $3 2 | 4 units | $4 3 | 6 units | $5 4 | 7 units | $7 5 | 8 units | $8 ### DescriptionThis data table represents an economy producing only one product, with year 3 designated as the base year. Each year's output and price per unit are specified, and this data is used to understand economic concepts such as GDP.### QuestionUsing the table, calculate the nominal GDP for year 4. The options provided are:1) $49 2) $35 3) $55 4) $40 To calculate nominal GDP, multiply the units of output by the price per unit for year 4:\[ \text{Nominal GDP for year 4} = 7 \text{ units} \times \$7 = \$49 \]Therefore, the correct answer is option 1: $49.

Given: The data for an economy producing only one good and that year 3 is base year. Nominal GDP…

Answered: Units of Price Per Unit Output 3 Year…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Find the last year GDP data and the personal consumption expenditure data (in billions) for the US economy. Section 1: Domestic Product and Income
Question 11 Gross domestic product (GDP) is best defined as the total market value of all a) final goods produced within a country within a given time. b) goods and services produced within a country within a given time. c) final goods and services produced within a country within a given time. d) goods produced within a country within a given time. e) services produced within a country within a given time.
GDP Data (in $ billion) Table 7-1 Durable goods = $10,600.49 Services = $12,500.56 %3D Business purchases of capital goods = $1,080.00 Fixed investment = $1,970.45 Exports = $700.00 Imports = $820.46 Nondurable goods = $1,000.46 Inventory investment = $301.25 Government transfer payments - $1,240.26 %3D Purchases of new residential housing - $890.45 Government purchases = $7.890.56 Refer to Table 7-1. GDP is equal to O S34,141.31 O $33,143.31 O $34,133.31 O $34.143.31
You are given the following: Year Quantity of Cars Price of Cars Quantity of Buses Price of Buses 2013 5 million $20,000 1 million $100,000 2014 5.1 million $22,000 1.2 million $102,000 Base Year = 2013 2a. Calculate nominal GDP for 2013. Nominal GDP for 2013 = (5 million × $20,000) + (1 million × $100,000) = $100,000 million + $100,000 million = $200,000 million 2b. Calculate nominal GDP for 2014. Nominal GDP for 2014 = (5.1 million × $22,000) + (1.2 million × $102,000) = $112,200 million + $122,400 million = $234,600 million. 2c. Calculate real GDP for 2014. The real GDP for 2014 will be calculated as:- Real GDP for 2014 = (5.1 million × $20,000) + (1.2 million × $100,000) = $102,000 million + $120,000 million = $222,000 million. 2d. Calculate the GDP Deflator to the nearest tenth for 2014. 2e. What does your previous number mean? 2f. Calculate the CPI to the nearest tenth for 2014. (Use 2013 as the base year.)
A simple economy produces two goods, Apple Pies and Software. Price and quantity data are as follows: In Year 2, nominal GDP is equal to: $ and real GDP is $ Production and Prices in Year 1 (Base year) Quantity 105 550 Product Apple Pies Software Price Per Unit Production and Prices in Year 2 Quantity 131.25 825.00 Product Apple Pies Software $2.00 $50.00 Price Per Unit (enter both responses rounded to the nearest penny). $3.00 $100.00
The market value of all finished goods and services produced within an economy during a year converted to the same base year prices is the definition of: Nominal GDP National Income Gain Real GDP National Income Loss
Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP (Base year 2019, dollars) GDP Deflator Year (Dollars) 2019 2020 2021
You are discussing economic growth and the economic cycle with a group of colleagues in an effort to forecast the growth in an economy that is demonstrating an increase in investment, rising employment, and growing business confidence with slowly rising prices. Your discussion has encompassed the distinction between GDP and GNP and the importance of leading indicators for forecasting purposes. Based on this information, answer the following three questions. In national income accounting, what is the difference between gross domestic product (GDP) and gross national product (GNP)? GNP equals GDP plus domestic production/earnings by foreign companies/citizens ,minus foreign production/earnings by domestic companies/citizens GNP equals GDP plus foreign production/earnings by domestic companies/citizens, minus domestic production/earnings by foreign companies/citizens GNP equals GDP plus imports minus exports GNP equals GDP minus government spending minus exports plus imports.
Consider the following data for a hypothetical economy that produces two goods: milk and honey. Quantity Produced Prices Milk (litres) Honey (kg) Milk ($/litre) Honey ($/kg) Year 1 110 45 2 6 Year 2 125 40 37 Compute nominal GDP for each year in this economy. Using year 1 as the base year, compute real GDP for each year. What is the percentage change in real GDP from year 1 to year 2? Using year 1 as the base year, compute the price deflator for each year. Now compute the GDP deflator for each year, using year 2 as the base year. Explain why the measures of real GDP growth (and growth in the deflator) depend on the choice of base year.
An economist, measuring GDP, first counted the value of aluminum created by an aluminum producer and then counted the value of a new car that an automaker sold that contains that aluminum. This characterizes: A) Depreciation B) Change in inventories C) Double Counting D) National income
Question 3 Consumer spending in GDP measurement does NOT include spending by businesses on labor resources households on necessary expenses such as gasoline individual households on durable items such automobiles and computers. families on services such as healthcare students on tuition.
GDP deflator = (Nominal GDP/Real GDP) x 100 Nominal GDP = Current Price x Current QuantityNominal GDP (2020) = 10 x 4,000 + 30 x 1,000 = 40,000+30,000 = 70,000Nominal GDP (2021) = 12 x 6,000 + 50 x 1,200 = 72,000 + 60,000 = 132,000 Real GDP = Base year price x Current QuantityReal GDP (2020) = 10 x 4,000 + 30 x 1,000 = 40,000 + 30,000 = 70,000Real GDP (2021) = 1..

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