Homework Answers
2.
Nominal GDP=
PiQi
Nominal GDP in Year 2004=1*200+10*50
=200+500
=$700
b.
Real GDP=
base year
price* current year quantity
Real GDP of 2004=1*200+10*50
=200+500
=$700
c.
Nominal GDP=
PiQi
Nominal GDP in Year 2005=1*220+11*50
=220+550
=$770
d.
Real GDP=
base year
price* current year quantity
Real GDP of 2005=1*220+10*50
=220+500
=$720
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2. Suppose the following table records the total output and prices for an entire economy. Further,...
2. Suppose the following table records the total output and prices for an entire economy. Further,...
2. Suppose the following table records the total output and prices for an entire economy. Further, suppose the base year in the following table is 2004. Quantity of Soda Quantity of Jeans Year 2004 2005 Price of Soda €1.00 1.00 Price of Jeans €10.00 11.00 a. What is the value of nominal GDP in 2004? Answer: b. What is the value of real GDP in 2004? Answer: c. What is the value of nominal GDP in 2005? Answer: d. What...
2. Suppose the following table records the total output and prices for an entire economy. Further,...
2. Suppose the following table records the total output and prices for an entire economy. Further, suppose the base year in the following table is 2004. Price of Soda Quantity of Soda Quantity of Jeans Year 2004 2005 Price of Jeans €10.00 11.00 €1.00 1.00 220 a. What is the value of nominal GDP in 2004? Answer: b. What is the value of real GOP in 2004? Answer: What is the value of nominal GDP in 2005? Answer: d. What...
1. Suppose that a simple economy produced only three goods: wheat, automobiles, and chairs. The table...
1. Suppose that a simple economy produced only three goods: wheat, automobiles, and chairs. The table below lists the quantity and prices for each of the goods for year 2000 and 2010. Based on table, answer the following questions (18 total points): Price in 2000 Wheat Automobiles Chairs Quantity produced in 2000 100 200 400 $5 $40,000 $10 a) Calculate nominal GDP in year 2000. (5 points) b) Suppose prices doubled by 2010 but production stayed the same. Calculate the...
solve question 4 and 5 3. Calculate the following given the information about the economy in...
solve question 4 and 5
3. Calculate the following given the information about the economy in the table: Total population Noninstitutional population Incapable of working Not in the labour force Employed Unemployed 260 million 200 million 60 million 66 million 134 million 10 million 5. Calculate the following given the following information about the economy in 1985, 1995, and 1999: 1985 1995 1999 Nominal GDP 4,213 9,256.1 (in billions of dollars) GDP deflator 73.7 98.1 (index, 1996=100) Real GDP 7,543.8...
1. Suppose that a simple economy produced only three goods: wheat, automobiles, and chairs. The table...
1. Suppose that a simple economy produced only three goods: wheat, automobiles, and chairs. The table below lists the quantity and prices for each of the goods for year 2000 and 2010. Based on table, answer the following questions (7.8 total points): Price in 2000 Wheat Automobiles Chairs Quantity produced in 2000 100 200 400 $5 $40,000 $10 a) Calculate nominal GDP in year 2000. 5 points) b) Suppose prices doubled by 2010 but production stayed the same. Calculate the...
The annual output and prices of a 3-good economy are shown in the table below. Assume...
The annual output and prices of a 3-good economy are shown in the table below. Assume Year 1 is the base year. Quantity Price of Ice Quantity of of Ice Cream Shampoo Cream Price of Shampoo Quantity of Peanut Butter Price of Peanut Butter Year 1 $3 Year 2 $10 What was nominal GDP in year 1?$ What was real GDP in year 1?$ What was nominal GDP in year 2?$ 0 What was real GDP in year 2?$O
Box At: Take the following information as true. An economy produces two yood soda and jeans....
Box At: Take the following information as true. An economy produces two yood soda and jeans. The quantities and prices (per unit of quantity of these goods produced and consumed in two years are given in the table below. There is no l. Gor X-M. All output is consumed Soda Jeans Quantity Quantity 200 220 50 Refer to Box Al and further suppose the base yaris 2016. What is the value of the GOP deflator in 2016
1. Suppose there are only 3 different goods produced and consumed in a closed economy. The...
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...
Suppose country A produces 3 goods only; textbooks, computers and cell-phones. The total production and prices...
Suppose country A produces 3 goods only; textbooks, computers and cell-phones. The total production and prices of all goods are given in the following table. Year 2000 is the base year. Item 2000 2001 2002 Price Quantity Price Quantity Price Quantity Textbooks $200 12 $250 16 $400 14 Computers $1,000 5 $1,200 9 $1,500 7 Cell-phones $600 10 $650 15 $800 12 Calculate the nominal GDP in 2002. Calculate the real GDP in 2001 and 2002. Explain why real GDP...
The annual output and prices of a 3-good economy are shown in the table below. Assume...
The annual output and prices of a 3-good economy are shown in the table below. Assume Year 1 is the base year. Quantity of Ice CreamPrice of Ice CreamQuantity of ShampooPrice of ShampooQuantity of Peanut ButterPrice of Peanut ButterYear 13$51$43$3Year 25$92$62$4What was nominal GDP in year 1?$ What was real GDP in year 1?$ What was nominal GDP in year 2?$ What was real GDP in year 2? $
2. Suppose the following table records the total output and prices for an entire economy. Further, suppose the base year in the following table is 2004. Quantity of Soda Quantity of Jeans Year 2004 2005 Price of Soda €1.00 1.00 Price of Jeans €10.00 11.00 a. What is the value of nominal GDP in 2004? Answer: b. What is the value of real GDP in 2004? Answer: c. What is the value of nominal GDP in 2005? Answer: d. What...
2. Suppose the following table records the total output and prices for an entire economy. Further, suppose the base year in the following table is 2004. Price of Soda Quantity of Soda Quantity of Jeans Year 2004 2005 Price of Jeans €10.00 11.00 €1.00 1.00 220 a. What is the value of nominal GDP in 2004? Answer: b. What is the value of real GOP in 2004? Answer: What is the value of nominal GDP in 2005? Answer: d. What...
1. Suppose that a simple economy produced only three goods: wheat, automobiles, and chairs. The table below lists the quantity and prices for each of the goods for year 2000 and 2010. Based on table, answer the following questions (18 total points): Price in 2000 Wheat Automobiles Chairs Quantity produced in 2000 100 200 400 $5 $40,000 $10 a) Calculate nominal GDP in year 2000. (5 points) b) Suppose prices doubled by 2010 but production stayed the same. Calculate the...
solve question 4 and 5
3. Calculate the following given the information about the economy in the table: Total population Noninstitutional population Incapable of working Not in the labour force Employed Unemployed 260 million 200 million 60 million 66 million 134 million 10 million 5. Calculate the following given the following information about the economy in 1985, 1995, and 1999: 1985 1995 1999 Nominal GDP 4,213 9,256.1 (in billions of dollars) GDP deflator 73.7 98.1 (index, 1996=100) Real GDP 7,543.8...
1. Suppose that a simple economy produced only three goods: wheat, automobiles, and chairs. The table below lists the quantity and prices for each of the goods for year 2000 and 2010. Based on table, answer the following questions (7.8 total points): Price in 2000 Wheat Automobiles Chairs Quantity produced in 2000 100 200 400 $5 $40,000 $10 a) Calculate nominal GDP in year 2000. 5 points) b) Suppose prices doubled by 2010 but production stayed the same. Calculate the...
The annual output and prices of a 3-good economy are shown in the table below. Assume Year 1 is the base year. Quantity Price of Ice Quantity of of Ice Cream Shampoo Cream Price of Shampoo Quantity of Peanut Butter Price of Peanut Butter Year 1 $3 Year 2 $10 What was nominal GDP in year 1?$ What was real GDP in year 1?$ What was nominal GDP in year 2?$ 0 What was real GDP in year 2?$O
Box At: Take the following information as true. An economy produces two yood soda and jeans. The quantities and prices (per unit of quantity of these goods produced and consumed in two years are given in the table below. There is no l. Gor X-M. All output is consumed Soda Jeans Quantity Quantity 200 220 50 Refer to Box Al and further suppose the base yaris 2016. What is the value of the GOP deflator in 2016
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...
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