Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 23, Problem 7QR
To determine
The nominal and real GDP and GDP deflator.
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Students have asked these similar questions
In the year 2023, the economy produces 100 loaves of bread that sell for $2 each. Calculate the nominal GDP, real GDP, and the GDP deflator for each year. (Use 2023 as the base year.) By what percentage does each of these three statistics rise from one year to the next?
Suppose the information in the following table is for a simple economy that produces only four goods and services: shoes, hamburgers, shirts, and cotton. Assume that shoes, hamburgers, and shirts are final goods and that all the cotton is used in the production of shirts. Calculate the GDP deflator for 2015. Use 2009 as the base year for the calculations. Provide your answer as a number rounded to two decimal places. Do not include any symbols, such as "$," "=," "%," or "," in your answer.
GDP Deflator (NomGDP/Real GDP)*100
88.4
Assignment 3 Chapter 6.
Determine if each of the following would be included or not included in USA GDP for
2020. All transactions occurred in 2020. Circle Yes or No
1. Rebecca real estate agent sells a house built in 2014 for $1,500,000. Yes
No
2. $250,000 Bushels of wheat produced in 2020 were exported to Mexico. Yes
No
3. Michael, a US citizen works over in Germany producing automobiles. Yes
No
4. A Mickey Mantle Rookie card is sold on EBAY for $60,000. Yes
No
5. John takes his family out for dinner at Shake Shack Dec 15,2020. Yes
No
6. Quark company purchases $5,000,000 of new property, plant, and equipment.
Yes
No
7. The Government employees Higgs Inc. to repair the roads in Washington DC at a
cost of $2,500,000. Yes
No
8. Veronica secretly sells Marijuana out of her laundry mat and makes $750,000
revenue for 2020. Yes
No
9. General Motors has $35,000,000 Work in Process inventory on Dec 31, 2020
Yes
No
Chapter 23 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
Ch. 23.1 - Prob. 1QQCh. 23.2 - Prob. 2QQCh. 23.3 - Prob. 3QQCh. 23.4 - Prob. 4QQCh. 23.5 - Prob. 5QQCh. 23 - Prob. 1QRCh. 23 - Prob. 2QRCh. 23 - Prob. 3QRCh. 23 - Prob. 4QRCh. 23 - Prob. 5QR
Ch. 23 - Prob. 6QRCh. 23 - Prob. 7QRCh. 23 - Prob. 8QRCh. 23 - Prob. 1QCMCCh. 23 - Prob. 2QCMCCh. 23 - Prob. 3QCMCCh. 23 - Prob. 4QCMCCh. 23 - Prob. 5QCMCCh. 23 - Prob. 6QCMCCh. 23 - Prob. 1PACh. 23 - Prob. 2PACh. 23 - Prob. 3PACh. 23 - Prob. 4PACh. 23 - Prob. 5PACh. 23 - Prob. 6PACh. 23 - Prob. 8PACh. 23 - Prob. 9PACh. 23 - Prob. 10PACh. 23 - Prob. 11PA
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Similar questions
- Which of the following are included in GDP calculations? a. Cleaning services performed by Molly Maid Corporation b. Lawn-mowing services performed by a neighborhood child c. Drugs sold illegally on a local street comer d. Prescription drugs manufactured in the United States and sold at a local pharmacy e. A rug woven by hand in Turkey f. Air pollution that diminishes the quality of the air you breathe g. Toxic-waste cleanup performed by a local company h. Car parts manufactured in the United States for a car assembled in Mexico i. A purchase of 1,000 shares of IBM stock j. Monthly Social Security payments received by a retireearrow_forwardnational income accounts for the U.S. for 2005 billions of dollars billions of chained (2000) dollars consumption expenditures 8742.4 7841.2 gross private domestic investment 2057.4 1866.3 government expenditures 2372.8 1958.0 Net exports of goods and services -716.7 -619.2 compute the nominal and real GDP in 2005 Why do these two measures differ? Why do we compute both? Compute the GDP deflator 2005. Use this also to compute the inflation rate from 2000 to 2005. Was there inflation or deflation? Please answer all part I will ratearrow_forwardplease calculate correct gdparrow_forward
- Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply. Transaction Honda expands its factory in Ohio. You purchase a box of Belgian chocolate. You pay a hairdresser for a haircut. Uncle John receives a check from the federal government for unemployment insurance benefits. Your parents buy a new house from a local builder. Ford sells a Mustang from its inventory to the Martinez family. Uncle Henry buys a new refrigerator from a domestic manufacturer. New York hires workers to plow snow after a snowstorm. Consumption Investment D 0 0 D D 00 0 O 0 0 m O 0 e Government Purchases O W O 0000 Net Exports DOO 0 00000arrow_forwardTable 23-2 A country produces only ice cream and cake in the quantities and prices listed below. Use 2011 as the base year. 6. Refer to Table 23-2. Calculate real and nominal GDP for the year 2012. 7. Refer to Table 23-2. Calculate real and nominal GDP for the year 2013. 8. Refer to Table 23-2. Calculate the GDP deflator for 2012 and 2013.arrow_forwardThree of the main products produced in Grossmania's manufacturing sector are leather, laces and dyes. The table below shows the outputs (miilions/Units) and prices ($) for the years 2018 and 2019. Leather Dyes Laces Year Prices ($) Quantity Prices ($) Quantity Prices ($) Quantity 2018 100 3 10 8 5 4 2019 110 5 12 10 4 5 Required: Calculate the nominal GDP for 2018 and 2019 Using 2018 as the base year, calculate the real GDP for 2019 What is the GDP deflator for 2019.arrow_forward
- The nominal GDP for 2016 was $17,500 and the real GDP was $13,000 Calculate GDP deflatorarrow_forwardA simple economy produces four goods, pumpkins, pumpkin pies, cell phones, and video games. All of the production of pumpkins is used in the production of pumpkin pies. Use the information in the following table to compute GDP for the current year. Product pumpkins Quantity 100 Price Per Unit $0.25 pumpkin pies 200 $1.00 cell phones 900 $700.00 video games 1800 $10.00 In this year, the nominal value of GDP in this economy is $arrow_forwardI Consider a country that produces only wheat and corn. Based on the data in the table, calculate the country's real GDP for year 2008 (assume 2005 as the base year) is: Price of Wheat (per bushel) $56 Quantity of Wheat (million bushels) 1.250 1,360 1,420 1,500 Price of Corn Quantity of Corn Year 2005 2006 2007 2008 (per bushel) $44 (million tons) 910 64 1,050 1,120 1,260 52 72 55 62arrow_forward
- Which of the following is NOT included in 2004's GDP? Group of answer choices The profit earned in 2004 from selling a stock that you purchased in 2001. The value of a personal computer produced in 2004 in the United States. The value of a car produced in 2004 in the United States and exported to England. The commission earned by an employment counselor in 2004 when she locates a job for a client.arrow_forwardIf a country produces the following items during the year, calculate GDP.Item Quantity Price Market Value(Quantity x Price)Cars 10 $20,000Computers 100 $1, 000Books 1,000 $10GDP =arrow_forwardin the year 2019, an economy produces 100 loaves of bread that sell for Rs8 each, in the year 2019, the economy produces 200 loaves of bread taht sell for Rs10 each. calculate nominal GDP, and real GDP, and the GDPM deflator for each year. (use 2020 as a base year).arrow_forward
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