Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 21, Problem 3.6P
Subpart (a):
To determine
To calculate the nominal
Subpart (b):
To determine
To calculate the real GDP for 2013, 2014, and 2015 using 2013 as the base year and also the growth rate of real GDP.
Subpart (c):
To determine
To calculate the real GDP for 2013, 2014, and 2015 using 2014 as the base year and also the growth rate of real GDP.
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Fruitland has a very simple economy: it produces just apples and oranges. It has no imports and exports.
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Question No.18:
Artica is a nation with a simple economy that produces only six goods: oranges,
bicycles, magazines, paper, orange juice, and hats. Assume that half of all the
oranges are used to produce juice and one-third of all of all the paper is used to
produce magazines.
a. Use the production and price information in the table to calculate
nominal GDP for 2011.
b. Use the production and price information in the table to calculate real
GDP for 2009, 2010, and 2011 using 2009 as the base year. What is the
growth rate of real GDP from 2009 to 2010 and 2010 to 2011?
c. Use the production and price information in the table to calculate real
GDP for 2009, 2010 and 2011 using 2010 as the base year. What is the
growth rate of real GDP from 2009 to 2010 and 2010 to 2011?
2009
2010
2011
PRODUCT
QUANTITY PRICE
QUANTITY PRICE
QUANTITY PRICE
Oranges
180
$0.90
200
$1.00
200
$1.25
Bicycles
20
85.00
25
90.00
30
95.00
Magazines
175
3.50
150
3.50
150
3.25
Раper
675
0.60
600
0.50
630
0.50
Orange…
Chapter 21 Solutions
Principles of Economics (12th Edition)
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