Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 21.A, Problem 2SPP
To determine
To compute:
Value of 2016 production in 2015 prices and percentage increase in production when valued at 2015 prices.
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The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the
last several years are shown below. The base year is 2015.
Prices and Quantities
Quantity of
Cereal
Quantity of
Milk
Year
Price of Cereal
Price of Milk
2015
2016
$4.00
$1.50
100
120
180
200
$4.00
$2.00
2017
$5.00
150
$2.50
200
2018
$6.00
180
$3.50
240
1. Refer to Table 23-5. For each year listed, calculate real GDP and the GDP deflator, using 2015 as
the base year.
2. Refer to Table 23-5. By how much did output grow from 2016 to 2017?
3. Refer to Table 23-5. What was this country's inflation rate from 2016 to 2017? From 2017 to
2018?
Table 23-5
The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown
below. The base year is 2015.
Prices and Quantities
Quantity of
Quantity of
Year
Price of Cereal
Price of Milk
Cereal
Milk
2015
$4.00
100
$1.50
180
2016
$4.00,
120
$2.00
200
2017
$5.00
150
$2.50
200
Refer to Table 23-5. Between 2016 - 2017 this country's economy grew
O 15.4%.
O 53.6%,
O 31.39%.
42.0%.
(05.02 HC)
Review the chart to answer the question that follows.
Total Population GDP
Country A
5,000
10,000
Country B
10,000
15,000
Country C
2,000
8,000
Country D
1,000
5,000
Which additional type of data would be most important for comparing the standard of living of these countries?
Share of budget set aside for defense
Percent of territory that is water
Number of airports
Literacy rate
Chapter 21 Solutions
Foundations of Economics (8th Edition)
Ch. 21.A - Prob. 1SPPCh. 21.A - Prob. 2SPPCh. 21.A - Prob. 3SPPCh. 21.A - Prob. 4SPPCh. 21.A - Prob. 5SPPCh. 21.A - Prob. 6SPPCh. 21.A - Prob. 7SPPCh. 21.A - Prob. 1IAPCh. 21.A - Prob. 2IAPCh. 21.A - Prob. 3IAP
Ch. 21.A - Prob. 4IAPCh. 21.A - Prob. 5IAPCh. 21.A - Prob. 6IAPCh. 21.A - Prob. 7IAPCh. 21 - Prob. 1SPPACh. 21 - Prob. 2SPPACh. 21 - Prob. 3SPPACh. 21 - Prob. 4SPPACh. 21 - Prob. 5SPPACh. 21 - Prob. 6SPPACh. 21 - Prob. 7SPPACh. 21 - Prob. 8SPPACh. 21 - Prob. 9SPPACh. 21 - Prob. 10SPPACh. 21 - Prob. 1IAPACh. 21 - Prob. 2IAPACh. 21 - Prob. 3IAPACh. 21 - Prob. 4IAPACh. 21 - Prob. 5IAPACh. 21 - Prob. 6IAPACh. 21 - Prob. 7IAPACh. 21 - Prob. 8IAPACh. 21 - Prob. 9IAPACh. 21 - Prob. 10IAPACh. 21 - Prob. 11IAPACh. 21 - Prob. 12IAPACh. 21 - Prob. 1MCQCh. 21 - Prob. 2MCQCh. 21 - Prob. 3MCQCh. 21 - Prob. 4MCQCh. 21 - Prob. 5MCQCh. 21 - Prob. 6MCQCh. 21 - Prob. 7MCQ
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