Question

Questions 6-12 Zesta's Economic Data 2016 | 2017 Actual GDP ($ Billions) 900 B = ? = Actual GDP growth rate (%) 2.0% Real GDP ($ Billions) TA=T A T | | 2018 2019 965 2.50% 915 TE = ? 1 D = ? Real GDP growth rate (%) GDP Price Deflator Rate of inflation (%) C = ? 103 101 105 F = ? Actual = Nominal = Current
Hello, can someone help me out with the question 8,9,11,12?

I calculated for question 8 the answer might be 0.33, however, there is no 0.33 as the answer.

The procedure is (Real GDP2017-Real GDP2016)/ Real GDP2016=(893-890)/890=0.33

Thank you so much!

Answer 1

8. The correct option would be

• (a) 0.01

Since no rounding is mentioned, using the original non-rounded values, we have the following values.
900 RGDP2016 = = 891.0891
,
NGD P2017 = 900*(1 +0.02) = 918
,
_NGD 2017 _ 918 KGDF 2017 = 1.031.03 $41.2021
, and hence
RGD P2017 - RGDP 2016 G 2017 = ? RGDP 2016
or
G 2017 = 891.2621 - 3 * 10C 891.0891
or
GR2017 = 0.019414445 = 0.01%
(note that this value is not rounded, and is taken upto two decimals).

9. The correct option would be

• (b) 2.66

We have
_RGD P2018 - RGD 2017 G 2018 = + RGDP 2017
or
915 – 891.2021, 100- Gr2018 = 2 891.2621
or
GR2018 = 2.663402831 = 2.66%
(note that this value is also not rounded, and is taken upto two decimals).

11. The correct option would be

• (b) 2.10

We have the required values as follows. We have
NGDP2018 = NGDP2017 *(1 +0.025) =918(1+0.025) = 940.95
,
DEFL2018 = RGDP 2018 NGDP2018 **100= 940.95 915 * 100 = 102.830
, and hence the inflation would be as
DEFL2019 - DEFL2018 100 12019 = ? DEFL 2015 105 - 102.836 102.836 - 100
or
12019= 2.104321444 = 2.10%
(taken upto two decimals).

12. The correct option would be

• (d) The AD curve . . . not shift while SRAS and LRAS . . . increase.

A much larger Canadian and world wheat crop than forecast would mean a positive supply shock, which would increase the SRAS and LRAS, since now more can be supplied than before at the same price level.