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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Chapter 21, Problem 3.7P
To determine
To calculate the
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The following table contains nominal and real GDP data, in billions of dollars, from the U.S. Bureau of Economic Analysis for 2013 and 2014. The data is listed per quarter, and the real GDP data was calculated using 2009 as the base year. Fill in the columns for the GDP deflator and for the percent increase in price level.
(Round your responses to two decimal places!)
Quarter
Nominal GDP
Real GDP
GDP Deflator
Percent Increase in Price Level (%)
2013 Q1
16,502.40
15,538.40
106.20
----
2013 Q2
16,619.20
15,606.60
?
?
2013 Q3
16,872.30
15,779.90
?
?
2013 Q4
17,078.30
15,916.20
?
?
2014 Q1
17,044.00
15,831.70
?
?
2014 Q2
17,328.20
16,010.40
?
?
2014 Q3
17,599.80
16,205.60
?
?
2014 Q4
17,703.70
16,294.70
?
?
Please explain how to solve the empty columns thank you!
The following table contains nominal and real GDP data, in billions of dollars, from the U.S. Bureau of Economic Analysis for 2016
and 2018. The data is listed per quarter, and the real GDP data was calculated using 2009 as the base year. Fill in the columns for
the GDP deflator, for the percent increase in the price level, and economic growth rate.
(Note: Rounding to three decimal points for GDP deflator and to the nearest tenth for price increase and economic growth rate)
Quarter
2016 Q4
2017 Q1
2017 Q2
2017 Q3
2017 Q4
2018 Q1
2018 Q2
2018 Q3
2018 Q4
Nominal GDP
18,325.2
18,538.0
18,729.1
18,905.5
19,057.7
19,250.6
19,500.6
19,754.1
20,098.8
Real GDP
16,571.6
16,663.5
16,778.1
16,851.4
16,903.2
17,031.1
17,163.9
17,286.5
17.457.6
GDP
Deflator
What is the value of the following indicators in the 2017 Q2 for:
GDP deflator?
percent Increase in Price Level?
economic Growth rate?
Percent Increase in
Price Level (%)
(rounding to three decimal points)
What is the value of the following…
The gross domestic product (GDP) of the United States is defined as the
all
in a given period of time.
Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in
2018.
2018 GDP
Scenario
Included
Excluded
Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 25, 2018. It sells the set of
tires to Speedmaster for use in the production of a two-door coupe that will be made in the United States in 2018.
(Note: Focus exclusively on whether production of the set of tires increases GDP directly, and ignore the effect of
production of the two-door coupe on GDP.)
Roadway Motors, a U.S. automobile company, produces a convertible at a plant in Germany on March 27, 2018.
Roadway Motors imports the convertible into the United States on May 18, 2018.
The Jones family buys an antique silver platter at an auction in upstate New York on March 27, 2018.
Zippycar, a U.S.…
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Principles of Economics (12th Edition)
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- GDP = $ Billion Use the data below to calculate GDP using the income approach. (I intentionally left out some of the expenditure categories so that you must use the income approach). All figures are in billions of dollars: Gross Private Domestic Investment 848.3 Proprietor's Income 413.9 Dividends 190.6 Wages and Salaries 3183.1 Undistributed Corporate Profits 62.3 Corporate Income Taxes 199.6 Imports 638.6 Government Expenditures | 1296.2 Rents 51.9 Transfer Payments 693.1 Exports 562.6 Indirect Business Taxes 447.4 Consumption of fixed capital (depreciation) 778.3 Net foreign factor income earned in the U.S. 33.7 Social Security Contributions 483.6 Interest 429.5 Personal Taxes 591.9 ....arrow_forwardThe table below presents a brief summary of City A’s total spending, local GDP, and population changes. Read the table and answer the following questions. 2010 2020 Total spending ($ million) 89 104.12 Local GDP ($ millions) 110 134 Population 50,000 56,275 CPI deflators (2012=1) 0.96 1.05 Calculate % change for City A’s total spending from 2010 to 2020 in current dollars. *Results round to the nearest 2 decimal places. Calculate % change for City A’s total spending from 2010 to 2020 in constant dollars. *Results round to the nearest 2 decimal places. Why does % change calculated from constant dollars differ from % change calculated from current dollar? Calculate per capita spending in 2010 and 2020, respectively, using constant dollars. *Results round to the nearest dollar. 2010 per capita spending: 2020 per capita spending: Calculate the compound annual growth rate of per capita spending from 2010 to 2020…arrow_forwardAccording to the Bureau of Economic Analysis, the GDP Deflator for the 3rd Quarter 2021 is +5.7%. The U.S. Bureau of Labor Statistics reported the Consumer Price Index (CPI) as rising 5.4 percent over the last 12 months, not seasonally adjusted. Given this information: 1) Interpret these data and summarize its meaning. 2) What are these data measuring? 3) If you were a business economist, which would you use and why?arrow_forward
- Give step by step answerarrow_forwardThe following table shows the outputs and prices of three products produced by an economy in 2018, 2019 and 2020. (i) Measure the nominal GDP, the real GDP and the GDP deflator in 2019 and 2020, taking 2018 as the base year.(ii) Using the GDP deflator, measure the inflation rate in the economy between 2018 and 2019, and also between 2019 and 2020. (iii) Assume all household consumption items are locally produced as shown in the table in Question (a). A typical household in the economy consumes 5 units of rice, 4 units of shirt and 2 units of shoes in 2018. Using 2018 as the base year, measure the CPI for 2019 and 2020 and the inflation rate between 2018 and 2019, and also between 2019 and 2020. Explain why the inflation rate is different from those computed from (a)(ii).arrow_forwardThe gross domestic product (GDP) of the United States is defined as the market value of all final goods and services produced within the United States in a given period of time. Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2020. 2020 GDP Scenario Included Excluded Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 14, 2020. A family buys the sedan on December 24. Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 25, 2020. It sells the set of tires to Speedmaster for use in the production of a two-door coupe that will be made in the United States in 2020. (Note: Focus exclusively on whether production of the set of tires increases GDP directly, and ignore the effect of production of the two-door coupe on GDP.) You chop down a cherry tree on your property in California and make a dining room table in…arrow_forward
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