(a) Year 1 Year 2 Quantity Price Quantity Price Oranges 100 $5 150 $5 Pears 100 $3 75 $4 The growth rate of constant-dollar real GDP with Year 1 as base.

Question

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Answer 1

Question

Chapter 5, Problem 3E

To determine

(a)

Year 1 Year 2
Quantity Price Quantity Price
Oranges 100 $5 150 $5
Pears 100 $3 75 $4

The growth rate of constant-dollar real GDP with Year 1 as base.

Expert Solution

Answer to Problem 3E

The growth rate of constant dollar GDP is negative 3.21% with year 1 as the base price.

Explanation of Solution

	Year 1	Year 2	Year 1	Year 2
	Quantity	Price	Quantity	Price	Value of goods with Year 1 as base	Value of goods with Year 1 as base
Oranges	100	$5	150	$5	$500	$750
Pears	100	$3	75	$4	$300	$225
Total					$800	$775

The growth rate of GDP from Year 1to Year 2 is given by:

Growth Rate of GDP = (GDP Year 2 – GDP Year 1)GDP Year 1×100

Growth Rate of GDP = (775 – 800)800×100

Growth Rate of GDP = (25)800×100 = -3.125%

Economics Concept Introduction

Constant dollar real GDP - The nominal GDP adjusted for the inflation which reflects the value of all services and goods produced within the country in a year expressed in base year price.

To determine

(b)

Year 1 Year 2
Quantity Price Quantity Price
Oranges 100 $5 150 $5
Pears 100 $3 75 $4

The growth rate of constant-dollar real GDP with Year 2 as base.

Expert Solution

Answer to Problem 3E

The growth rate of constant dollar GDP with year 2 as base price is 16.67%.

Explanation of Solution

	Year 1	Year 2	Year 1	Year 2
	Quantity	Price	Quantity	Price	Value of goods with Year 2 as base	Value of goods with Year 2 as base
Oranges	100	$5	150	$5	$500	$750
Pears	100	$3	75	$4	$400	$300
Total					$900	$1050

The growth rate of GDP from Year 1to Year 2 is given by

Growth Rate of GDP = (GDP Year 2 – GDP Year 1)GDP Year 1×100

Growth Rate of GDP = (1050 – 900)900×100

Growth Rate of GDP = 150900×100 = 16.67%

Economics Concept Introduction

Constant dollar real GDP - The nominal GDP adjusted for the inflation which reflects the value of all goods and services produced within the country in a year expressed in base year price.

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Exercise 5Consider the demand and supply functions for the notebooks market.QD=10,000−100pQS=900pa. Make a table with the corresponding supply and demand schedule.b. Draw the corresponding graph.c. Is it possible to find the price and quantity of equilibrium with the graph method? d. Find the price and quantity of equilibrium by solving the system of equations.

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Answer 2

Question

Chapter 5, Problem 3E

To determine

(a)

Year 1 Year 2
Quantity Price Quantity Price
Oranges 100 $5 150 $5
Pears 100 $3 75 $4

The growth rate of constant-dollar real GDP with Year 1 as base.

Expert Solution

Answer to Problem 3E

The growth rate of constant dollar GDP is negative 3.21% with year 1 as the base price.

Explanation of Solution

	Year 1	Year 2	Year 1	Year 2
	Quantity	Price	Quantity	Price	Value of goods with Year 1 as base	Value of goods with Year 1 as base
Oranges	100	$5	150	$5	$500	$750
Pears	100	$3	75	$4	$300	$225
Total					$800	$775

The growth rate of GDP from Year 1to Year 2 is given by:

Growth Rate of GDP = (GDP Year 2 – GDP Year 1)GDP Year 1×100

Growth Rate of GDP = (775 – 800)800×100

Growth Rate of GDP = (25)800×100 = -3.125%

Economics Concept Introduction

Constant dollar real GDP - The nominal GDP adjusted for the inflation which reflects the value of all services and goods produced within the country in a year expressed in base year price.

To determine

(b)

Year 1 Year 2
Quantity Price Quantity Price
Oranges 100 $5 150 $5
Pears 100 $3 75 $4

The growth rate of constant-dollar real GDP with Year 2 as base.

Expert Solution

Answer to Problem 3E

The growth rate of constant dollar GDP with year 2 as base price is 16.67%.

Explanation of Solution

	Year 1	Year 2	Year 1	Year 2
	Quantity	Price	Quantity	Price	Value of goods with Year 2 as base	Value of goods with Year 2 as base
Oranges	100	$5	150	$5	$500	$750
Pears	100	$3	75	$4	$400	$300
Total					$900	$1050

The growth rate of GDP from Year 1to Year 2 is given by

Growth Rate of GDP = (GDP Year 2 – GDP Year 1)GDP Year 1×100

Growth Rate of GDP = (1050 – 900)900×100

Growth Rate of GDP = 150900×100 = 16.67%

Economics Concept Introduction

Constant dollar real GDP - The nominal GDP adjusted for the inflation which reflects the value of all goods and services produced within the country in a year expressed in base year price.

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Answer 3

Question

Chapter 5, Problem 3E

To determine

(a)

Year 1 Year 2
Quantity Price Quantity Price
Oranges 100 $5 150 $5
Pears 100 $3 75 $4

The growth rate of constant-dollar real GDP with Year 1 as base.

Expert Solution

Answer to Problem 3E

The growth rate of constant dollar GDP is negative 3.21% with year 1 as the base price.

Explanation of Solution

	Year 1	Year 2	Year 1	Year 2
	Quantity	Price	Quantity	Price	Value of goods with Year 1 as base	Value of goods with Year 1 as base
Oranges	100	$5	150	$5	$500	$750
Pears	100	$3	75	$4	$300	$225
Total					$800	$775

The growth rate of GDP from Year 1to Year 2 is given by:

Growth Rate of GDP = (GDP Year 2 – GDP Year 1)GDP Year 1×100

Growth Rate of GDP = (775 – 800)800×100

Growth Rate of GDP = (25)800×100 = -3.125%

Economics Concept Introduction

Constant dollar real GDP - The nominal GDP adjusted for the inflation which reflects the value of all services and goods produced within the country in a year expressed in base year price.

To determine

(b)

Year 1 Year 2
Quantity Price Quantity Price
Oranges 100 $5 150 $5
Pears 100 $3 75 $4

The growth rate of constant-dollar real GDP with Year 2 as base.

Expert Solution

Answer to Problem 3E

The growth rate of constant dollar GDP with year 2 as base price is 16.67%.

Explanation of Solution

	Year 1	Year 2	Year 1	Year 2
	Quantity	Price	Quantity	Price	Value of goods with Year 2 as base	Value of goods with Year 2 as base
Oranges	100	$5	150	$5	$500	$750
Pears	100	$3	75	$4	$400	$300
Total					$900	$1050

The growth rate of GDP from Year 1to Year 2 is given by

Growth Rate of GDP = (GDP Year 2 – GDP Year 1)GDP Year 1×100

Growth Rate of GDP = (1050 – 900)900×100

Growth Rate of GDP = 150900×100 = 16.67%

Economics Concept Introduction

Constant dollar real GDP - The nominal GDP adjusted for the inflation which reflects the value of all goods and services produced within the country in a year expressed in base year price.

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Answer 4

Question

Chapter 5, Problem 3E

To determine

(a)

Year 1 Year 2
Quantity Price Quantity Price
Oranges 100 $5 150 $5
Pears 100 $3 75 $4

The growth rate of constant-dollar real GDP with Year 1 as base.

Expert Solution

Answer to Problem 3E

The growth rate of constant dollar GDP is negative 3.21% with year 1 as the base price.

Explanation of Solution

	Year 1	Year 2	Year 1	Year 2
	Quantity	Price	Quantity	Price	Value of goods with Year 1 as base	Value of goods with Year 1 as base
Oranges	100	$5	150	$5	$500	$750
Pears	100	$3	75	$4	$300	$225
Total					$800	$775

The growth rate of GDP from Year 1to Year 2 is given by:

Growth Rate of GDP = (GDP Year 2 – GDP Year 1)GDP Year 1×100

Growth Rate of GDP = (775 – 800)800×100

Growth Rate of GDP = (25)800×100 = -3.125%

Economics Concept Introduction

Constant dollar real GDP - The nominal GDP adjusted for the inflation which reflects the value of all services and goods produced within the country in a year expressed in base year price.

To determine

(b)

Year 1 Year 2
Quantity Price Quantity Price
Oranges 100 $5 150 $5
Pears 100 $3 75 $4

The growth rate of constant-dollar real GDP with Year 2 as base.

Expert Solution

Answer to Problem 3E

The growth rate of constant dollar GDP with year 2 as base price is 16.67%.

Explanation of Solution

	Year 1	Year 2	Year 1	Year 2
	Quantity	Price	Quantity	Price	Value of goods with Year 2 as base	Value of goods with Year 2 as base
Oranges	100	$5	150	$5	$500	$750
Pears	100	$3	75	$4	$400	$300
Total					$900	$1050

The growth rate of GDP from Year 1to Year 2 is given by

Growth Rate of GDP = (GDP Year 2 – GDP Year 1)GDP Year 1×100

Growth Rate of GDP = (1050 – 900)900×100

Growth Rate of GDP = 150900×100 = 16.67%

Economics Concept Introduction

Constant dollar real GDP - The nominal GDP adjusted for the inflation which reflects the value of all goods and services produced within the country in a year expressed in base year price.

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Answer 5

Chapter 5, Problem 3E

To determine

(a)

Year 1 Year 2
Quantity Price Quantity Price
Oranges 100 $5 150 $5
Pears 100 $3 75 $4

The growth rate of constant-dollar real GDP with Year 1 as base.

Expert Solution

Answer to Problem 3E

The growth rate of constant dollar GDP is negative 3.21% with year 1 as the base price.

Explanation of Solution

	Year 1	Year 2	Year 1	Year 2
	Quantity	Price	Quantity	Price	Value of goods with Year 1 as base	Value of goods with Year 1 as base
Oranges	100	$5	150	$5	$500	$750
Pears	100	$3	75	$4	$300	$225
Total					$800	$775

The growth rate of GDP from Year 1to Year 2 is given by:

Growth Rate of GDP = (GDP Year 2 – GDP Year 1)GDP Year 1×100

Growth Rate of GDP = (775 – 800)800×100

Growth Rate of GDP = (25)800×100 = -3.125%

Economics Concept Introduction

Constant dollar real GDP - The nominal GDP adjusted for the inflation which reflects the value of all services and goods produced within the country in a year expressed in base year price.

To determine

(b)

Year 1 Year 2
Quantity Price Quantity Price
Oranges 100 $5 150 $5
Pears 100 $3 75 $4

The growth rate of constant-dollar real GDP with Year 2 as base.

Expert Solution

Answer to Problem 3E

The growth rate of constant dollar GDP with year 2 as base price is 16.67%.

Explanation of Solution

	Year 1	Year 2	Year 1	Year 2
	Quantity	Price	Quantity	Price	Value of goods with Year 2 as base	Value of goods with Year 2 as base
Oranges	100	$5	150	$5	$500	$750
Pears	100	$3	75	$4	$400	$300
Total					$900	$1050

The growth rate of GDP from Year 1to Year 2 is given by

Growth Rate of GDP = (GDP Year 2 – GDP Year 1)GDP Year 1×100

Growth Rate of GDP = (1050 – 900)900×100

Growth Rate of GDP = 150900×100 = 16.67%

Economics Concept Introduction

Constant dollar real GDP - The nominal GDP adjusted for the inflation which reflects the value of all goods and services produced within the country in a year expressed in base year price.

Answer 6

Chapter 5, Problem 3E

To determine

(a)

Year 1 Year 2
Quantity Price Quantity Price
Oranges 100 $5 150 $5
Pears 100 $3 75 $4

The growth rate of constant-dollar real GDP with Year 1 as base.

Expert Solution

Answer to Problem 3E

The growth rate of constant dollar GDP is negative 3.21% with year 1 as the base price.

Explanation of Solution

	Year 1	Year 2	Year 1	Year 2
	Quantity	Price	Quantity	Price	Value of goods with Year 1 as base	Value of goods with Year 1 as base
Oranges	100	$5	150	$5	$500	$750
Pears	100	$3	75	$4	$300	$225
Total					$800	$775

The growth rate of GDP from Year 1to Year 2 is given by:

Growth Rate of GDP = (GDP Year 2 – GDP Year 1)GDP Year 1×100

Growth Rate of GDP = (775 – 800)800×100

Growth Rate of GDP = (25)800×100 = -3.125%

Economics Concept Introduction

Constant dollar real GDP - The nominal GDP adjusted for the inflation which reflects the value of all services and goods produced within the country in a year expressed in base year price.

Answer 7

Chapter 5, Problem 3E

To determine

(a)

Year 1 Year 2
Quantity Price Quantity Price
Oranges 100 $5 150 $5
Pears 100 $3 75 $4

The growth rate of constant-dollar real GDP with Year 1 as base.

Answer 8

Expert Solution

Answer to Problem 3E

The growth rate of constant dollar GDP is negative 3.21% with year 1 as the base price.

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

	Year 1	Year 2	Year 1	Year 2
	Quantity	Price	Quantity	Price	Value of goods with Year 1 as base	Value of goods with Year 1 as base
Oranges	100	$5	150	$5	$500	$750
Pears	100	$3	75	$4	$300	$225
Total					$800	$775

The growth rate of GDP from Year 1to Year 2 is given by:

Growth Rate of GDP = (GDP Year 2 – GDP Year 1)GDP Year 1×100

Growth Rate of GDP = (775 – 800)800×100

Growth Rate of GDP = (25)800×100 = -3.125%

Answer 13

Economics Concept Introduction

Constant dollar real GDP - The nominal GDP adjusted for the inflation which reflects the value of all services and goods produced within the country in a year expressed in base year price.

Answer 14

To determine

(b)

Year 1 Year 2
Quantity Price Quantity Price
Oranges 100 $5 150 $5
Pears 100 $3 75 $4

The growth rate of constant-dollar real GDP with Year 2 as base.

Expert Solution

Answer to Problem 3E

The growth rate of constant dollar GDP with year 2 as base price is 16.67%.

Explanation of Solution

	Year 1	Year 2	Year 1	Year 2
	Quantity	Price	Quantity	Price	Value of goods with Year 2 as base	Value of goods with Year 2 as base
Oranges	100	$5	150	$5	$500	$750
Pears	100	$3	75	$4	$400	$300
Total					$900	$1050

The growth rate of GDP from Year 1to Year 2 is given by

Growth Rate of GDP = (GDP Year 2 – GDP Year 1)GDP Year 1×100

Growth Rate of GDP = (1050 – 900)900×100

Growth Rate of GDP = 150900×100 = 16.67%

Economics Concept Introduction

Constant dollar real GDP - The nominal GDP adjusted for the inflation which reflects the value of all goods and services produced within the country in a year expressed in base year price.

Answer 15

To determine

(b)

Year 1 Year 2
Quantity Price Quantity Price
Oranges 100 $5 150 $5
Pears 100 $3 75 $4

The growth rate of constant-dollar real GDP with Year 2 as base.

Answer 16

Expert Solution

Answer to Problem 3E

The growth rate of constant dollar GDP with year 2 as base price is 16.67%.

Answer 17

Expert Solution

Answer 18

Expert Solution

Answer 19

Expert Solution

Answer 20

Explanation of Solution

	Year 1	Year 2	Year 1	Year 2
	Quantity	Price	Quantity	Price	Value of goods with Year 2 as base	Value of goods with Year 2 as base
Oranges	100	$5	150	$5	$500	$750
Pears	100	$3	75	$4	$400	$300
Total					$900	$1050

The growth rate of GDP from Year 1to Year 2 is given by

Growth Rate of GDP = (GDP Year 2 – GDP Year 1)GDP Year 1×100

Growth Rate of GDP = (1050 – 900)900×100

Growth Rate of GDP = 150900×100 = 16.67%

Answer 21

Economics Concept Introduction

Constant dollar real GDP - The nominal GDP adjusted for the inflation which reflects the value of all goods and services produced within the country in a year expressed in base year price.

Answer 22

Ch. 5 - Prob. 1E Ch. 5 - Prob. 2E Ch. 5 - Prob. 3E Ch. 5 - Prob. 4E Ch. 5 - Prob. 5E Ch. 5 - Prob. 6E Ch. 5 - Prob. 7E Ch. 5 - Prob. 8E Ch. 5 - Prob. 9E Ch. 5 - Prob. 10E

(a) Year 1 Year 2 Quantity Price Quantity Price Oranges 100 $5 150 $5 Pears 100 $3 75 $4 The growth rate of constant-dollar real GDP with Year 1 as base.

(a) Year 1Year 2QuantityPriceQuantityPriceOranges100$5150$5Pears100$375$4 The growth rate of constant-dollar real GDP with Year 1 as base.

Answer to Problem 3E

Explanation of Solution

(b) Year 1Year 2QuantityPriceQuantityPriceOranges100$5150$5Pears100$375$4 The growth rate of constant-dollar real GDP with Year 2 as base.

Answer to Problem 3E

Explanation of Solution

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Chapter 5 Solutions

(a)

Year 1 Year 2
Quantity Price Quantity Price
Oranges 100 $5 150 $5
Pears 100 $3 75 $4

The growth rate of constant-dollar real GDP with Year 1 as base.

(b)

Year 1 Year 2
Quantity Price Quantity Price
Oranges 100 $5 150 $5
Pears 100 $3 75 $4

The growth rate of constant-dollar real GDP with Year 2 as base.