In year 1 and year 2, an economy produces computers and bread. No intermediate goods. In...
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 GDP. (c) Calculate real GDP using year 1 as base. (d) Find the growth rate of real GDP using year 1 as base. (e) Find the deflator. (f) Calculate real GDP using year 2 as base. (g) Find the growth rate of real GDP using year 2 as base.
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In year 1 and year 2, an economy produces computers and bread.
No intermediate goods. In...
Consider an economy that produces and consumes coffee, bread and auto- mobiles. In the following table,...
Consider an economy that produces and consumes coffee, bread and auto- mobiles. In the following table, we have data for two different years. The first 2 questions refer to this table. Price of 1 Automobile Price of 1 loaf of Bread Price of 1 cup of Coffee Number of Automobiles Produced Number of Loaves of Bread Produced Number of Cups of Coffee Produced Year 2018 $30,000 $1.50 $2.00 1000 400,000 100,000 Year 2019 $31,000 $1.60 $2.20 1100 400,000 105,000 1....
Calculate the GDP deflator and the percentage inflation rate from year 1 to year 2 by...
Calculate the GDP deflator and the percentage inflation rate
from year 1 to year 2 by using year 1 as the base year. Next, do
the same calculations by using the chain-weighting method.
The chain-weighting growth rate was given: 23.498%
In ycar I and ycar 2, thcrc arc two products produced in a given cconomy: computers and brcad. Suppose that there arc no intermediate goods. In ycar I, 20 computers arc produced and sold at $1000 each, and in year...
1. Explain why experimentation is difficult in macroeconomics. And, suppose that you had speed powers to...
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. The economy of Britannica produces three Year Computers DVDs Pizzas goods: computers, DVDs, and pizza....
5. The economy of Britannica produces three Year Computers DVDs Pizzas goods: computers, DVDs, and pizza. The Price Quantity Price Quantity Price Quantity accompanying table shows the prices and 2010 $900 10 $10 100 15 2 output of the three goods for the years 2011 1,000 10.5 12 105 16 2 2012 1,050 12 14 110 2010, 2011, and 2012. a. Calculate nominal GDP in Britannica for each of the three years. What is the per- cent change in nominal...
Consider an economy with two goods produces, computers and bicycles. The following Table summarizes the production...
Consider an economy with two goods produces, computers and bicycles. The following Table summarizes the production and price information of these two goods over two years: Price Quantity Year 1 computers: price:500 quantity:10 bicycles: price:50 quantity:100 Year 2 computers: price:600 quantity:20 bicycles: price:80 quantity:120 2.1 Compute the Nominal GDP in both years. What is the rate of growth of nominal GDP? 2.2 Compute the Real GDP in both years using Year 1 as the base year. What is the rate...
National Accounts and Price Indices Consider an economy that only produces three types of goods and...
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Assume that in the Economy only two goods are produced: Computers and TV’s. Macroeconomic information for...
Assume that in the Economy only two goods are produced: Computers and TV’s. Macroeconomic information for this economy is given in Table. a. How much is Nominal GDP in 2017 and 2018? What is the percentage change? b. How much is Real GDP in 2017 and 2018, by considering 2017 as the base year? What is the percentage change? c. How much is the GDP deflator in the two years? By what percentage does the price level change from the...
Consider an economy that produces and consumes apples and computers as shown in the table below:...
Consider an economy that produces and consumes apples and computers as shown in the table below: Good 2019 | Quantity Price 500 $ 2 5 $1,000 2020 Quantity Price 550 $3 $1,000 Apples Computers a. Using 2019 as the base year, compute nominal GDP and real GDP for both years. b. Utilizing the growth rates in both nominal and real GDPs, estimate the inflation rate for 2020.
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 $3 each a) Calculate nominal GDP in years 1 and 2. b) Calculate real GDP in years...
B) Hoaa expands its factory in Marysville, Ohio. 7. An economy produces the following goods: cars,...
B) Hoaa expands its factory in Marysville, Ohio. 7. An economy produces the following goods: cars, textbooks, hamburgers, shirts and cotton. The quantities (Q) and prices (P) for the years of 2005 and 2010 are as follows 2 points each Q in 2005 P in 2005 Q in 2010 P in 2010 Textbooks 90 Hamburgers 75 Shirts Cotton 50 $2 $30 100 100 50 8,000 $60 $2 $25 $.6 50 10,000$.8 (a) Calculate nominal GDP for the 2 years. (b)...
Consider an economy that produces and consumes coffee, bread and auto- mobiles. In the following table, we have data for two different years. The first 2 questions refer to this table. Price of 1 Automobile Price of 1 loaf of Bread Price of 1 cup of Coffee Number of Automobiles Produced Number of Loaves of Bread Produced Number of Cups of Coffee Produced Year 2018 $30,000 $1.50 $2.00 1000 400,000 100,000 Year 2019 $31,000 $1.60 $2.20 1100 400,000 105,000 1....
Calculate the GDP deflator and the percentage inflation rate
from year 1 to year 2 by using year 1 as the base year. Next, do
the same calculations by using the chain-weighting method.
The chain-weighting growth rate was given: 23.498%
In ycar I and ycar 2, thcrc arc two products produced in a given cconomy: computers and brcad. Suppose that there arc no intermediate goods. In ycar I, 20 computers arc produced and sold at $1000 each, and in year...
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...
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Consider an economy that produces and consumes apples and computers as shown in the table below: Good 2019 | Quantity Price 500 $ 2 5 $1,000 2020 Quantity Price 550 $3 $1,000 Apples Computers a. Using 2019 as the base year, compute nominal GDP and real GDP for both years. b. Utilizing the growth rates in both nominal and real GDPs, estimate the inflation rate for 2020.
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B) Hoaa expands its factory in Marysville, Ohio. 7. An economy produces the following goods: cars, textbooks, hamburgers, shirts and cotton. The quantities (Q) and prices (P) for the years of 2005 and 2010 are as follows 2 points each Q in 2005 P in 2005 Q in 2010 P in 2010 Textbooks 90 Hamburgers 75 Shirts Cotton 50 $2 $30 100 100 50 8,000 $60 $2 $25 $.6 50 10,000$.8 (a) Calculate nominal GDP for the 2 years. (b)...
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