1. In years 1 and 2, there are 2 goods produced in a given economy, sausages...
1. In years 1 and 2, there are 2 goods produced in a given economy, sausages and pens. In year 1, 10,000 sausages are produced and sold at $2 each, and in year 2, 20,000 sausages are produced and sold at $2.10 each. In year 1, 15,000 pens are sold for $2 dollars each and in year 2, 48,000 pens are sold for d3 eac 2. Now, in the above economy, also suppose that 8,000 burger buns were imported and...
1. Suppose there are only 3 different goods produced and consumed in a closed economy. The following table shows the prices and quantities of each good consumed in 2002, 2003, 2004, and 2005. Price of a Quantity of Price Price of Quantity pair of a pair of of Quantity Year Apple of Apple shoes Breed of Breed 3001000 1500 shoes 2002 2003 500 600 15 100 1200 2004 80020 3501300 2005 900 25 500 Calculate nominal GDP in each of...
In year 1 and year 2, an economy produces computers and bread. No intermediate goods. In year 1, 20 computers are produced and sold each for $1000. In year 2, 25 computers were sold at $1500 each. In year 1, 10,000 loaves of bread are sold at a price of $1 each. And in year 2, 12,000 loaves are sold at a price of $1.1 each. (a) Calculate nominal GDP in each year. (b) Find the growth rate of nominal...
3. Assume an economy in which only broccoli and cauliflower are produced. In year 1, 300 million pounds of broccoli are produced and consumed, and its price is S0.50 per pound, while 400 million pounds of cauliflower are produced and consumed and its price is S0.40 per pound. In year 2 250 million pounds of broccoli are produced and consumed and its price is S0.50 per pound, while 400 million pounds of cauliflower are produced and its price is SO.80...
Consider an economy that only produces and consumes milk and cars. In the table are data from 2 different years Year 2000 Year 2016 Price for a litre of milk $1 $2 # of milks produced 500 400 Price for a car $50 $100 # of cars produced 100 120 a) using the year 2000 as a base year, compute for 2000 and 2016 for the following statistics: nominal GDP, real GDP, price deflator and the CPI b) How much...
Assume that an economy produces only three goods; Computers, cars, and pizza. Table 1 gives the price and quantity for each good and the number of employed and unemployed individuals for the years 2010-2013. Table 2 gives the fixed basket used for calculating the CPI. Assume that the base year is 2011 and show your work! Table 1 - Price and Quantity of Goods Sold in 2010-2013 2010 2011 2012 2013 P Q P O P Q 25 Computers Cars...
Consider a simple economy that produces two goods: pens and erasers. The following table shows the prices and quantities of the goods over a three-year period. Year Pens Erasers Price Quantity Price Quantity (Dollars per pen) (Number of pens) (Dollars per eraser) (Number of erasers) 2016 1 110 2 150 2017 2 155 4 215 2018 3 120 4 180 Use the information from the preceding table to fill in the following table. Year Nominal GDP Real GDP GDP Deflator...
1. Explain why experimentation is difficult in macroeconomics. And, suppose that you had speed powers to travel back in time to the Great Depression. What experiment would you like to run on the U.S. economy and why? 2. Assume an economy where there are two producers: a wheat and bread producer. In a given year, the wheat producer grows 30 million bushels of wheat of which 25 million bushels are sold to the bread producer at $3 per bushel, and...
5. Real versus nominal GDP Consider a simple economy that produces two goods: pens and erasers. The following table shows the prices and quantities of the goods over a three-year period. Year Pens Erasers Price Quantity Price Quantity (Dollars per pen) (Number of pens) (Dollars per eraser) (Number of erasers) 2018 2 115 5 175 2019 4 150 2 180 2020 1 100 2 160 Use the information from the preceding table to fill in the following table. Year Nominal...
National Accounts and Price Indices Consider an economy that only produces three types of goods and services: bread tractors, and haircuts. The following table shows how many of these goods were produced in three consecutive years and at what price they were sold. year bread tractors haircuts units sold price units sold price units sold price 2008 2009 2010 4,950,000 5,000,000 5,050,000 $1.00 S1.00 S1.05 95 100 95 $45,000 $50,000 $45,000 96,000 100,000 104,000 S50 $55 a) Calculate nominal GDP...