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.)
- You are given the following:
|
Year |
Quantity 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
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