Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 21.A, Problem 7SPP
To determine
To compare:
The growth rates of nominal
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 5 bars and the price is Rs.400 per bar. In year 2, the quantity produced is 6 bars and the price is Rs.500 per bar. In year 3, the quantity produced is 7 bars and the price is Rs.600 per bar. Year 1 is the base year.
What is the GDP deflator for year 3?
What is the percentage growth rate of real GDP from year 2 to year 3?
The table attached gives data on the production and prices in a small economy. Use 2012 as the base period.
What does nominal GDP equal in 2012?
What does nominal GDP equal in 2013?
What does real GDP equal in 2013?
Calculate the growth rate in real GDP from 2012-2013
8c
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
Knowledge Booster
Similar questions
- a) Nominal GDP 2013, 2014 b) Real GDP 2013, 2014 c) GDP growth rate d) Deflator 2014arrow_forwardGDP problems attached; thank you!arrow_forwardIn 2016, country A faced unfavorable weather conditions. Wheat production decreased to 450kg. Wheat-growers continued to sell 100kg to consumers, but could only sell 350kg to flour mills. To maintain production, flour mills imported 50kg of wheat from abroad, and maintained their production and sales unchanged. Prices did not move between 2015 and 2016. What is the GDP for 2016?arrow_forward
- Which of the following refers to those who are interested in assessing the relative standard of living in different countries over a given period? a.Percentage change in nominal GDP b.Population c.Per capita GDP. d.Nominal GDParrow_forwardThe 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?arrow_forwardstuck in homeworkarrow_forward
- Units Current Reales (million) Million 2000= 100 Reales Reales, 2000 2000 Nominal GDP Population GDP deflator Nominal GDPpc Real GDPpc Source: World Bank, World Development Indicators (online) 1,199,092 174.5 100.0 6,840 6,840 2017 How long would it take for real GDPpc to double? 6,559,940 209.3 369.4 28,299 7,661 What does this 0.9% growth in real GDPpc mean in terms long-term standard of living in Brazil? Average annual growth (%) 14.0 1.4 10.6 11.5 0.9 Iarrow_forwardCountry Real GDP(millions of dollars) Population(millions of people) Country A $3,850 9.05 Country B $3,850 4.21 .Based on the table above, which country has a higher standard of living and why? A. Country B has a higher standard of living because growth in GDP is greater in Country B than in Country A. B. Both countries have the same standard of living because their real GDP is equivalent. C. Country A has a higher standard of living because growth in GDP is greater in Country A than in Country B. D. Country A has a higher standard of living because their real GDP per capita is higher. E. Country B has a higher standard of living because their real GDP per capita is higher.arrow_forwardAn economy produces three products, bags, computers and shirts. The prices and quantities of these products in 2020 and 2021 are shown in the table below: 2020 2021 Price Price Quantity Quantity 300 $10 $12 330 Bags Computers $600 100 $650 110 Shirts $18 2,000 $20 2,200 2020 2021 Measure the nominal and real GDP for 2019 and 2020, using 2020 as the base year. Measure the nominal and real GDP growth rate in 2021. Which value is more accurate in measuring the growth rate of the economy? Explain. (b) The information on price and quantity of three products consumed by a typical household in the year 2020 and 2021 is given by the table below 2020 2021 Price Quantity Price 10 Quantity $5 $5.50 12 Fish Beef $10 5 $11 4 Train Ride $8 20 $9 22 Using 2020 as the base year, measure the CPI for 2021 and the inflation rate in 2021. Does this inflation rate correctly measure the cost of living changes for households in 2021? Explain.arrow_forward
- Product Pumpkin Pies Technical Manuals Product Pumpkin Pies Technical Manuals In Year 2, nominal GDP is equal to: $ and Prices in Year 1 (Base year) Quantity 110 550 Production and Prices in Year 2 Quantity 137.50 825.00 Price Per Unit and real GDP is $ $3.00 $30.00 Price Per Unit $4.50 $60.00 (enter both responses rounded to the nearest penny).arrow_forwardThe factor payments measure of GDP a. is found by summing all interest, profit, rent, and wages and salaries generated during the year b. calculates how much workers paid for goods and services during the year c. is found by summing all expenditures on final goods and services during the year d. can be expressed as GDP = C + I + G + NXarrow_forwardThere are two economies. At the beginning of Year 1, their real GDPs are equal. Economy A grows at a constant rate of 4%, while Economy grows at a constant rate of 1%. Compute the ratio between the two economies real GDP after 10 years, 20 years and 30 yearsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax