Question6 0.1 pts The table below describes the outcomes in an economy that produces only two...

Question

Question

Question6 0.1 pts The table below describes the outcomes in an economy that produces only two goods: markers and pencils. What is Real GDP in 1990 using 1991 as the base year? Good Markers Pencils Q-1990 95 450 Q-1991 100 500 P 1990 $0.50 $0.10 P 1991 $0.60 $0.11

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

When real GDP for a year is calculated then quantity produced in that year is used but price are used of the base year.

In given case, real GDP of 1990 has to be calculated with 1991 being the base year.

So, Quantity of pencil and markers produced in 1990 will be used but price will be used of 1991.

Calculate the Real GDP in 1990 -

Real GDP = [Quantity of markers in 1990 * Price of markers in 1991] + [Quantity of pencils in 1990 * Price of pencils in 1990]

Real GDP = [95 * $0.60] + [450 * $0.11]

Real GDP = $57 + $49.5

Real GDP = $106.5

Thus,

The Real GDP in 1990 using 1991 as the base year is $106.50.

Add a comment

Answer 2

Similar Homework Help Questions

Question 5 0.1 pts The table below describes the outcomes in an economy that produces only...

Question 5 0.1 pts The table below describes the outcomes in an economy that produces only two goods: markers and pencils. What is Nominal GDP in 1990 Good Markers Pencils q 1990 95 450 q- 1991 100 500 P- 1991 $0.60 $0.11 p - 1990 $0.50 $0.10
Question 8 0.1 pts The table below describes a simple economy that produces wood and furniture...

Question 8 0.1 pts The table below describes a simple economy that produces wood and furniture with multiple stages in the production process. First, the timber company collects wood and sells it to the sawmill. The sawmill converts the wood to lumber and sells part of it to the public as a final good and part to a furniture manufacturer. The furniture manufacturer uses the lumber to produce furniture that is sold as a final good to the public. Timber...
Question 7 0.1 pts The table below describes a simple economy that produces wood and furniture...

Question 7 0.1 pts The table below describes a simple economy that produces wood and furniture with multiple stages in the production process. First, the timber company collects wood and sells it to the sawmill. The sawmill converts the wood to lumber and sells part of it to the public as a final good and part to a furniture manufacturer. The furniture manufacturer uses the lumber to produce furniture that is sold as a final good to the public Revenues...

Question 11 44 pts 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 2017-2020. Table 2 gives the fixed bask

Question 11 44 pts 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 2017-2020. Table 2 gives the fixed basket used for calculating the CPI. Assume that the base year is 2018! Table 1 - Price and Quantity of Goods Sold in 2017-2020 2017 2018 2019 2020 Р Q 20 Q 15 Computers Р $400/unit $18,000/unit...
Consider a simple economy that produces two goods: pencils and oranges. The following table shows the...

Consider a simple economy that produces two goods: pencils and oranges. The following table shows the prices and quantities of the goods over a three-year period Pencils Oranges Price Price Quantity Quantity (Number of pencils) 110 155 120 (Dollars per pencil) (Dollars per orange) (Number of oranges) Year 2012 2013 2014 150 215 180 Use the information from the preceding table to fill in the following table Real GDP (Base year 2012, dollars) Nominal GDP (Dollars) GDP Deflator Year 2012...
5. Real versus nominal GDP Consider a simple economy that produces two goods: pencils and oranges. The following table s...

5. Real versus nominal GDP Consider a simple economy that produces two goods: pencils and oranges. The following table shows the prices and quantities of the goods over a three-year period. Year Pencils Oranges Price Quantity Price Quantity (Dollars per pencil) (Number of pencils) (Dollars per orange) (Number of oranges) Year Pencils Oranges Price Quantity Price Quantity (Dollars per pencil) (Number of pencils) (Dollars per orange) (Number of oranges) 2016 2 125 3 155 2017 4 135 3 210 2018...

Consider an economy that only produces two goods: strawberries and cream. Use the table below to...

Consider an economy that only produces two goods: strawberries and cream. Use the table below to compute nominal GDP, real GDP, and the GDP deflator for each year. (Year 2014 is the base year.) Year Price of strawberries Quantity of strawberries 2014 100 Price of Quantity cream of cream $3.00 | 200 $3.50 400 $4.00 500 | 2015 | $2.00 | 2016 $3.00 125 150 Year Nominal GDP Real GDP GDP deflator 2014 100 $ 700 $ 700 2015 118...
5. Real versus nominal GDP Consider a simple economy that produces two goods: pencils and erasers....

5. Real versus nominal GDP Consider a simple economy that produces two goods: pencils and erasers. The following table shows the prices and quantities of the goods over a three-year period. Pencils Price Quantity (Dollars per pencil (Number of pencils) 1 125 Erasers Price Quantity (Dollars per eraser (Number of erasers) 1 200 Year 2018 2019 170 4 230 2020 4 150 4 170 Use the information from the preceding table to fill in the following table. Nominal GDP (Dollars)...
5. Real versus nominal GDP Consider a simple economy that produces two goods: pencils and oranges....

5. Real versus nominal GDP Consider a simple economy that produces two goods: pencils and oranges. The following table shows the prices and quantities of the goods over a three-year period Pencils Oranges Price (Dollars per orange) 2 4 4 Price Year 2012 2013 2014 Quantity (Number of pencils) 145 165 110 Quantity (Number of oranges) 195 225 165 (Dollars per pencil) Use the information from the preceding table to fill in the following table Nominal GDP Real GDP (Dollars)...

@ Consider an economy that only produces two goods: strawberries and cream. Use the table below...

@ Consider an economy that only produces two goods: strawberries and cream. Use the table below to compute the nominal GDP, real GDP, the GDP deflator for each year, and the inflation rate. The year 2015 is the base year. SHOW ALL WORK. Year Price of strawberries (per pint) The number of strawberries (pints) Price of cream (per pint) The quantity of cream (pints) 2015 $3.00 100 $2.00 200 2016 $4.00 125 $2.50 400 2017 $5.00 150 $3.00 500 @...

Question6 0.1 pts The table below describes the outcomes in an economy that produces only two...

Homework Answers

Add Answer to:
Question6 0.1 pts The table below describes the outcomes in an economy that produces only two...

Post as a guest

Earn Coins

Question 5 0.1 pts The table below describes the outcomes in an economy that produces only...

Question 8 0.1 pts The table below describes a simple economy that produces wood and furniture...

Question 7 0.1 pts The table below describes a simple economy that produces wood and furniture...

Question 11 44 pts 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 2017-2020. Table 2 gives the fixed bask

Consider a simple economy that produces two goods: pencils and oranges. The following table shows the...

5. Real versus nominal GDP Consider a simple economy that produces two goods: pencils and oranges. The following table s...

Consider an economy that only produces two goods: strawberries and cream. Use the table below to...

5. Real versus nominal GDP Consider a simple economy that produces two goods: pencils and erasers....

5. Real versus nominal GDP Consider a simple economy that produces two goods: pencils and oranges....

@ Consider an economy that only produces two goods: strawberries and cream. Use the table below...

Question6 0.1 pts The table below describes the outcomes in an economy that produces only two...

Homework Answers

Add Answer to: Question6 0.1 pts The table below describes the outcomes in an economy that produces only two...

Post as a guest

Earn Coins

Add Answer to:
Question6 0.1 pts The table below describes the outcomes in an economy that produces only two...