Homework Answers
Q1
Intermediate goods are generally not included in the calculation of GDP. However, if we include the intermediate goods and services in GDP, then the direct impact would be that the GDP value would be overstated.
So, option a. is correct
Q2
Ratio of Real to Nominal GDP is called the Deflator. So, option d. is incorrect
A comparison of Real GDP of a year to the GDP of another year gives the trend and the growth rate in real GDP. So, option b. is incorrect
The price index is the cost of a market basket of goods and services in a current period divided by the cost of goods in the base year. It is not the other way round. So, option c. is incorrect
The price index is the comparison of the price of a market basket to a fixed point of reference. This fixed point is called the base year. Option a. is the correct choice.
Q3
Market prices are sticky in the short run and they do not adjust to the equilibrium conditions of the market. However, consumers want a stable market with stable prices. So, the statement is TRUE
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... STAY HOME 8:18 PM 18%O جوجو All Media 18/03/2020, 8:13 PM If intermediate goods and...
QUESTION 8 An example of intermediate goods would be OA sacks of groceries bought by a...
QUESTION 8 An example of intermediate goods would be OA sacks of groceries bought by a dentist for his family OB bricks bought by a homeowner for constructing a patio OC paper and ink bought by a publishing company OD cars bought by a car-rental company QUESTION 9 A price index is arket basket of goods and services in a base period divided by the cost of the same market basket in another periocd OB a comparison of real GDP...
Can someone explain how to do number 18 18) 18) Nominal GDP 2001 2002 2003 in...
Can someone explain how to do number 18
18) 18) Nominal GDP 2001 2002 2003 in billions of dollars) GDP deflater CPI 128.3 131.7 136.5 $ 5,900 6,300 6,800 120.1 123.0 126.3 Table 7.2 GDP for Newland Based on Table 7.2, the real GDP for 2003 was A) $9,282.0 billion. C) $5,384.0 billion. B) $4,981.7 billion. D) $8,588.4 billion. 19) 19) A sudden increase in inflation, ceteris paribus, A) Raises the CPI and reduces real income. B) Reduces the nominal...
Instructions: Please answer all y The following are all final goods except Four used by the...
Instructions: Please answer all y The following are all final goods except Four used by the baker to make cupcakes. b. Bread eaten by a family for lunch. c. Pencils used by a student in class. d. Adidas shoes used by a basketball player. in one year, a firm increases its production of computers by $9 million and it increases its sales by $8 million. Everything else remaining constant in the economy, which of the following statements is true a....
Residential investment includes spending by firms on office buildings. Select one: O True O False The...
Residential investment includes spending by firms on office buildings. Select one: O True O False The GDP deflator is a measure of the Select one: O a. average level of prices of intermediate goods and services in the economy. O b. average level of prices of final goods and services in the economy. O c. total production of the economy unadjusted for inflation. O d.) total production of the economy adjusted for inflation. To examine how the total production of...
Question 2 only services the market value of all goods and services consumed within the count...
Question 2 only
services the market value of all goods and services consumed within the count goods and services the total value-added by all producers operating within the coun b) and households on domestically produced final d) The following data is for country A, which produces only guns and bu 2013 2014 Quantity Price Price 3 $2 each. Guns Butter 2 kg 4k Using 2013 as the base year, which of the following is correct? a) Between 2013 and2014, country...
Format Window Help Messages (51 unread) Open with Preview Screen Shot 2019-09-22 at 5.06.31 PM.png Question...
Format Window Help Messages (51 unread) Open with Preview Screen Shot 2019-09-22 at 5.06.31 PM.png Question 11 [5 points] For all the questions below select the appropriate answer a) A basic measure of the standard of living in a country is: O that country's real GDP per capita. that country's nominal GDP per capita. O that country's nominal GDP that country's real GDP. b) A change in a general price index such as the GDP deflator, from 120.0 in year...
19. The consumer price index is the A) cOst of a market basket of goods and...
19. The consumer price index is the A) cOst of a market basket of goods and services typically consumed in the base year B) cost of a market basket of goods and services typically consumed in the current period. C) average of the prices of the goods and services purchased by a typical urban family of four. D) average of the prices of new final goods and services produced in the economy over a period of time 20. If your...
macroeconomic please solve it all i need help 8. If the price of coffee decreases, all...
macroeconomic
please solve it all
i need help
8. If the price of coffee decreases, all else held coestant, the Law of Demand states that a firms will produce more coffee b. people will buy more coffee 9. If the price of coffee decreases, all else held constant, the Law of Supply states that a firms will produce more coffee b. people will buy more coffee e. firms will produce less coffee d people will buy more milk shakes c....
Exam Version B 27. The consumer price index was 225 in 2006 and 236 in 2017....
Exam Version B 27. The consumer price index was 225 in 2006 and 236 in 2017. The nominal interest rate during this period was 6.5 percent. What was the (approximate) real interest rate during this period? 24. When the prevailing wage in a labor market is held above the equilibrium wage, for whatever reason, A. it means the labor market will function more efficiently than it otherwise would. B. there will be a shortage of labor. C. the quantity of...
please answer all The fiscal year for the federal government begins on: Select one: O a....
please answer all
The fiscal year for the federal government begins on: Select one: O a. The first Monday in January. O b. October 1st. O c. November 1st. O d. January 1st. Question 22 Not yet answered Points out of 1.00 P Flag question The GDP is: Select one: O a. C + I + G + (EX-IM). O b. The percentage of the labor force that is unable to find employment. O c. The measure of consumer prices...
QUESTION 8 An example of intermediate goods would be OA sacks of groceries bought by a dentist for his family OB bricks bought by a homeowner for constructing a patio OC paper and ink bought by a publishing company OD cars bought by a car-rental company QUESTION 9 A price index is arket basket of goods and services in a base period divided by the cost of the same market basket in another periocd OB a comparison of real GDP...
Can someone explain how to do number 18
18) 18) Nominal GDP 2001 2002 2003 in billions of dollars) GDP deflater CPI 128.3 131.7 136.5 $ 5,900 6,300 6,800 120.1 123.0 126.3 Table 7.2 GDP for Newland Based on Table 7.2, the real GDP for 2003 was A) $9,282.0 billion. C) $5,384.0 billion. B) $4,981.7 billion. D) $8,588.4 billion. 19) 19) A sudden increase in inflation, ceteris paribus, A) Raises the CPI and reduces real income. B) Reduces the nominal...
Instructions: Please answer all y The following are all final goods except Four used by the baker to make cupcakes. b. Bread eaten by a family for lunch. c. Pencils used by a student in class. d. Adidas shoes used by a basketball player. in one year, a firm increases its production of computers by $9 million and it increases its sales by $8 million. Everything else remaining constant in the economy, which of the following statements is true a....
Residential investment includes spending by firms on office buildings. Select one: O True O False The GDP deflator is a measure of the Select one: O a. average level of prices of intermediate goods and services in the economy. O b. average level of prices of final goods and services in the economy. O c. total production of the economy unadjusted for inflation. O d.) total production of the economy adjusted for inflation. To examine how the total production of...
Question 2 only
services the market value of all goods and services consumed within the count goods and services the total value-added by all producers operating within the coun b) and households on domestically produced final d) The following data is for country A, which produces only guns and bu 2013 2014 Quantity Price Price 3 $2 each. Guns Butter 2 kg 4k Using 2013 as the base year, which of the following is correct? a) Between 2013 and2014, country...
Format Window Help Messages (51 unread) Open with Preview Screen Shot 2019-09-22 at 5.06.31 PM.png Question 11 [5 points] For all the questions below select the appropriate answer a) A basic measure of the standard of living in a country is: O that country's real GDP per capita. that country's nominal GDP per capita. O that country's nominal GDP that country's real GDP. b) A change in a general price index such as the GDP deflator, from 120.0 in year...
19. The consumer price index is the A) cOst of a market basket of goods and services typically consumed in the base year B) cost of a market basket of goods and services typically consumed in the current period. C) average of the prices of the goods and services purchased by a typical urban family of four. D) average of the prices of new final goods and services produced in the economy over a period of time 20. If your...
macroeconomic
please solve it all
i need help
8. If the price of coffee decreases, all else held coestant, the Law of Demand states that a firms will produce more coffee b. people will buy more coffee 9. If the price of coffee decreases, all else held constant, the Law of Supply states that a firms will produce more coffee b. people will buy more coffee e. firms will produce less coffee d people will buy more milk shakes c....
Exam Version B 27. The consumer price index was 225 in 2006 and 236 in 2017. The nominal interest rate during this period was 6.5 percent. What was the (approximate) real interest rate during this period? 24. When the prevailing wage in a labor market is held above the equilibrium wage, for whatever reason, A. it means the labor market will function more efficiently than it otherwise would. B. there will be a shortage of labor. C. the quantity of...
please answer all
The fiscal year for the federal government begins on: Select one: O a. The first Monday in January. O b. October 1st. O c. November 1st. O d. January 1st. Question 22 Not yet answered Points out of 1.00 P Flag question The GDP is: Select one: O a. C + I + G + (EX-IM). O b. The percentage of the labor force that is unable to find employment. O c. The measure of consumer prices...
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