Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 23, Problem 5IAPA
To determine
To calculate:
Calculate nominal
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Gross Domestic Product
a. In 1803 the United States purchased Louisiana and other territories (828,000 square miles) from France $14,904,000. The GDP deflator for that year was 5.27. How much money did we pay in current dollars? Was the purchase worth it? (use the nearest year for which data is available)
b. In 1867 the United States bought Alaska from the Russian Empire for $7.2 million dollars. Use the web to find the a price index for that year and calculate the value of the purchase in current dollars? (use the nearest year for which data is available)
c. List at least four factors that you think you will be important measures of the statndard of living other that per capita real GDP. How do these factors relate to per capita real GDP? How could trading more freely among countries affect the size of economies?
Year
Price of Hot Dogs
Quantity of Hot Dogs Price of Hamburgers Quantity of Hamburgers
2018
$1
100
$1
100
2019
$1.5
150
$1.5
150
2020
$2
200
$2
200
1-1. Calculate Nominal and Real GDP (Use 2018 as base year). Show your work!
1-2. Calculate the GDP Deflator. What's the percentage increase in Price Level
between 2018 and 2019? Show your work!
Suppose an economy produces two goods: Apple and Banana. Calculate Nominal GDP and Real GDP by
taking 2015 as a base year.
Prices and Quantities
Quantity of
Apple
Price of Apple
Quantity of
Banana
Year
Price of Banana
2015
$2
100
$3
50
2016
$3
150
$4
100
2017
$4
200
$5
150
Chapter 23 Solutions
Foundations of Economics (8th Edition)
Ch. 23 - Prob. 1SPPACh. 23 - Prob. 2SPPACh. 23 - Prob. 3SPPACh. 23 - Prob. 4SPPACh. 23 - Prob. 5SPPACh. 23 - Prob. 6SPPACh. 23 - Prob. 7SPPACh. 23 - Prob. 8SPPACh. 23 - Prob. 9SPPACh. 23 - Prob. 10SPPA
Ch. 23 - Prob. 1IAPACh. 23 - Prob. 2IAPACh. 23 - Prob. 3IAPACh. 23 - Prob. 4IAPACh. 23 - Prob. 5IAPACh. 23 - Prob. 6IAPACh. 23 - Prob. 7IAPACh. 23 - Prob. 8IAPACh. 23 - Prob. 9IAPACh. 23 - Prob. 10IAPACh. 23 - Prob. 1MCQCh. 23 - Prob. 2MCQCh. 23 - Prob. 3MCQCh. 23 - Prob. 4MCQCh. 23 - Prob. 5MCQCh. 23 - Prob. 6MCQCh. 23 - Prob. 7MCQCh. 23 - Prob. 8MCQ
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