Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 21.A, Problem 4SPP
To determine
To compute:
Real
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The table shows the quantities produced and prices in 2015 and 2016 for an island.
economy which produces only bananas and coconuts.
The base year is 2016.
Calculate real GDP in 2015 and 2016 using the chained-dollar method.
In terms of what dollars is each of these two real GDPS measured?
Real GDP in 2016 using the chained-dollar method is
$
Real GDP in 2015 using the chained-dollar method is
$
>>> Answer with a whole number
Real GDP in 2015 and real GDP in 2016 are measured in
▼ dollars
In 2015
Item
Bananas
Coconuts
In 2016
Item
Bananas
Coconuts
Quantity
99 bunches
53 bags
Quantity
114 bunches.
66 bags.
Price
$10 a bunch
$9 a bag
Price
$11 a bunch
$10 a bag
Using the table below calculate the missing values. Take all calculations to 2 decimal places. $ not
required.
Year
2010
2011
2012
2013
2014
2015
Nominal
GDP
2,450
2,660
2,870
3,155
Number
3,558.4
Real
GDP
Number
2,745
Number
3,025
3,140
3,353.4
GDP
Deflator
0.94
Number
1.00
Number
Number
1.06
Number
Include a negative sign where appropriate in the following answers:
Part 7: Nominal growth rate year (2010-11) Number
Part 8: Nominal growth rate year (2012-13)
Part 9: Inflation rate year (2010-11) Number
Part 10: Real growth rate year (2011-12) Number
Part 11: Inflation rate year (2014-15) Number
Part 12: Real growth rate year (2013-14) Number
The country of Opalia produces two goods: footballs and basketballs. Below is a table showing prices and
quantities of output for the past three years:
Price of Footballs Quantity of Footballs Price of Basketballs Quantity of Basketballs
Year
Year 1
10
120
12
200
Year 2
200
300
12
15
Year 3
275
14
180
18
a) Calculate the nominal GDP for each year.
b) Calculate the real GDP for each year. (use year 1 as base year)
c) Calculate the GDP deflator.
d) Calculate the inflation rate.
e) Re-do parts b)-d), but use year 2 as the base year. How do your answers differ?
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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