Consider a simple economy that produces two goods: plastic cups and seltzers. The following table shows the prices and quantities of the goods over athree-year period.20192020PriceQuantityPriceQuantityYear (Dollars per plastic cup) (Number of plastic cups) (Dollars per seltzer) (Number of seltzers)2018218042104160Year201822420192020Use the information from the preceding table to fill in the following table.Nominal GDPReal GDP(Dollars) (Base year 2018, dollars) GDP DeflatorPlastic cupsFrom 2019 to 2020, nominal GDPThe inflation rate in 2020 was295140145and real GDPSeltzersWhy is real GDP a more accurate measure of an economy's production than nominal GDP?Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not.Real GDP is not influenced by price changes, but nominal GDP is.Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods andservices an economy consumes.

A summation of countries'final goods and services is known as Gross domestic product.. It measures…

Year 2018 2019 2020 (Dollars) EM (Base year 2018, dollars) From 2019 to 2020, nominal GDP The inflation rate in 2020 was GDP Deflator UQ and real GDP Why is real GDP a more accurate measure of an economy's production than nominal GDP? Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not. Real GDP is not influenced by price changes, but nominal GDP is. Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods and services an economy consumes.

Year 2018 2019 2020 (Dollars) EM (Base year 2018, dollars) From 2019 to 2020, nominal GDP The inflation rate in 2020 was GDP Deflator UQ and real GDP Why is real GDP a more accurate measure of an economy's production than nominal GDP? Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not. Real GDP is not influenced by price changes, but nominal GDP is. Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods and services an economy consumes.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The country of Economica's GDP deflator and nominal GDP in three different years are shown in the table. Year Nominal GDP GDP Deflator year 1 $25128 122 year 2 $54566 108 year 3 $30967 100 The base year, i.e. the base period, is Year 3. For years 1-3, please obtain the real GDP. Round your answers to the nearest dollar. What is the real GDP for year 1? real GDP: $ What is the real GDP for year 2? real GDP: $ What is the real GDP for year 3? real GDP: $
Consider a simple economy that produces two goods: stickers and donuts. The following table shows the prices and quantities of the goods over a three-year period. Year 2020 2021 2022 Year 2020 2021 2022 Price (Dollars per sticker) 2 3 2 Stickers From 2021 to 2022, nominal GDP Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP (Dollars) (Base year 2020, dollars) GDP Deflator The inflation rate in 2022 was Quantity (Number of stickers) 255 165 130 and real GDP Donuts Price (Dollars per donut) 2 3 3 Why is real GDP a more accurate measure of an economy's production than nominal GDP? Quantity (Number of donuts) 195 190 195 Real GDP is not influenced by price changes, but nominal GDP is. Real GDP includes the value of exports, but nominal GDP does not. Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods and services an economy consumes.
5. Real versus nominal GDP Consider a simple economy that produces two goods: plastic cups and enamel pins. The following table shows the prices and quantities of the goods over a three-year period. Price Quantity Year (Dollars per plastic cup) (Number of plastic cups) 2017 3 280 2018 2 165 2019 3 145 Use the information from the preceding table to fill in the following table. Year 2017 2018 2019 Nominal GDP (Dollars) Plastic cups Real GDP (Base year 2017, dollars) GDP Deflator From 2018 to 2019, nominal GDP The inflation rate in 2019 was I and real GDP Enamel pins Price (Dollars per enamel pin) 4 4 4 Quantity (Number of enamel pins) 165 220 185
5. An economy produces three goods: laptops, Apple phones, and plums. Production units and prices per unit for years 2020 and 2021 are as follows: 2020 2021 Quantity Price($) | Quantity Price($) Laptops Apple Phones Plums 10 2,000 12 3,000 4 1,000 6. 500 1,000 1 1,000 1 a. What is nominal GDP in 2020 and in 2021? b. Using 2020 as the base year, what is real GDP in 2020 and in 2021? c. What is the percentage increase in real GDP from 2020 to 2021? d. Repeat b. using 2021 as the base year. e. Does the growth rate for real GDP depend on which year is chosen as the base year?
Chapter 14 2012 2013 Item Quantity Price Quantity Price Bananas 100 $10 110 $15 Coconuts 50 $12 60 $10 An island economy produces only bananas and coconuts. The table gives the quantities produced and prices in 2012 and in 2013. 1. Calculate nominal GDP in 2012 and nominal GDP in 2013. R: Nominal GDP in 2013 ($15 x 110) + ($10 x 60)-$1,650+ $600-$2,250. 2. Calculate the value of 2013 production in 2012 prices and the percentage increase in production when valued at 2012 prices. R: 3. Calculate the value of 2012 production in 2013 prices and the percentage increase in production when valued at 2013 prices. R: 4. Use the chained-dollar method to calculate real GDP in 2012 and 2013. In terms of what dollars is each of these two real GDPS measured? R: 5. Using the chained-dollar method, compare the growth rates of nominal GDP and real GDP in 2013. R: Page fof1 21 of 167 wordh Engish (Unimed Statesi Fecua
3. Consider an economy that only produces mittens. In Year 1, 4000 pairs of mittens are produced and the price is $5 per pair. In the Year 2, 5000 pairs of mittens are produced and the price is $7 per pair. In Year 3, 7000 pair of mittens are produced and the price is $9 per pair. Use Year 1 as the base year. What is the nominal GDP for each year? What is the real GDP for each year? What is the GDP deflator for each year? What is the percentage growth rate of real GDP from year 2 to year 3? What is the inflation rate (as measured by the GDP deflator) from year 2 to year 3?
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2015 2016 2017 P Q P Q P Q Onion 1,2 400 1,5 600 2,5 400 Tomato 1 320 2,5 200 4 400 Pepper 4 50 12 50 14 50 Assume that there are only 3 goods produced in the economy. As seen in the table above, price(P) and quantity(Q) of goods are given for each year. Base year is 2016. According to this, Calculate nominal GDP for each year Calculate real GDP for each year Calculate the growth rate for the years 2016 and 2017 Calculate the inflation in 2016 and 2017 by using GDP deflator
Use following data to answer following questions. A country produces only milk and honey. The base Year 2016 2017 2018 Price of Milk $1 $2 $3 Quantity of Milk 100 Quarts 200 Quarts 200 Quarts year is 2016. Price of Honey $2 $2 $4 Quantity of Honey 50 Quarts 100 Quarts 100 Quarts C):1 a. Calculate the nominal GDP for 2016, 2017 and 2018. b. Calculate real GDP for 2016, 2017, and 2018. c. Calculate growth rate of nominal and real GDP for 2017 and 2018. d. Are nominal and real GDPs same for a given year? Please explain. e. Calculate the inflation rates for 2017 and 2018 using GDP deflator method.
Consider a simple economy that produces two goods: stickers and seltzers. The following table shows the prices and quantities of the goods over a three-year period. Stickers Price Quantity Year (Dollars per sticker) (Number of stickers) 2018 2 265 2019 135 2020 135 2 2 Seltzers Price (Dollars per seltzer) 1 Quantity (Number of seltzers) 160 230 180 Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP (Dollars) (Base year 2018, dollars) GDP Deflator Year 2018 2019 2020 From 2019 to 2020, nominal GDP The inflation rate in 2020 was 52 decreased ▼ , and real GDP increased Why is real GDP a more accurate measure or ah economy's production than nominal GDP? Real GDP is not influenced by price changes, but nominal GDP is. Real GDP does not include the value of intermediate goods and services, but nominal GDP does. Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods and services…