Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 7, Problem 2CQ
To determine
Determine the change in real
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
If nominal GDP increased by 6 percent during a year, while the GDP deflator increased by 4 percent, by how much did real GDP change during the year?
If nominal GDP rose, does that mean that production had to increase as well? Why or why not? What about if real GDP increased? Why is it important to use real GDP when comparing changes over time?
A car that is produces in 2012 is not sold until 2013. According the definition of GDP, in which year's GDP should it counted?
Chapter 7 Solutions
Economics: Private and Public Choice (MindTap Course List)
Knowledge Booster
Similar questions
- What components of GDP tend to decline significantly during recessions (particularly during the 2008 recession), and what GDP components rise during expansion?arrow_forwardWhat is GDP? What is real GDP ? What is per capita GDP ? Why is our GDP shrinking in the ongoing Corona Virus Crisis? What is a clear indication that the GDP will be decreasing?arrow_forwardIf a surfboard is produced this year but not sold until next year, how is it counted in this year's GDP and not next years?arrow_forward
- Complete the table below calculating Real GDP for all years (show your work for at least one year!) and answer the following: Nominal GDP, Deflator, and Real GDP Year Nominal GDP (billions of dollars) GDP Deflator 7,000 8,350 9,740 10,120 11,111 12,582 Real GDP 2010 100 2011 111.3 2012 116.6 2013 107.5 2014 102.4 2015 109.7 a. By looking at the table, which year is the Base Year? Justify your answer! b. Calculate the Real GDP growth from 2010 to 2015. Show your work!arrow_forwardIs GDP per capita a good measure of a country's standard of living? Is GDP a good measure of a country's well-being? How should a country’s well-being be measured?arrow_forwardWhat is the difference between GDP and Gross National Product (GNP)? Why do economists look at per capita measures of GDP and GNP when making comparisons between nations?arrow_forward
- Which of the components of GDP must increase if we are to experience greater rates of economic growth? If the illegal drug trade was legalized what would happen to GDP? What would happen to GDP if a significant number of house-spouses who were previously staying home to care for their children began taking jobs and placing their children in day-care? Would the nation's well-being necessarily be better off?arrow_forwardWhy do you suppose that U.S. GDP is so much higher today than 50 or 100 years ago?arrow_forwardHow could we increase GDP?arrow_forward
- If all quantities produced rise by 5 percent and all prices fall by 5 percent, why is nominal GDP unchanged?arrow_forwardBased on the graph, how many recessions has France economy undergone over the years plotted in the chart? Remember shaded areas shows recession. What are the two biggest recessions in terms of length and magnitude? 2020 is not included.arrow_forwardIn your opinion, which economic indicator, nominal GDP, real GDP, or inflation, do you believe provides the best picture of the state of the economy? Why?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage LearningMacroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
- Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage LearningSurvey of Economics (MindTap Course List)EconomicsISBN:9781305260948Author:Irvin B. TuckerPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Survey of Economics (MindTap Course List)
Economics
ISBN:9781305260948
Author:Irvin B. Tucker
Publisher:Cengage Learning