Homework Answers
a.
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. Quantity of Jeans Year 2004 2005 Price of Soda €1.00 1.00 Quantity of Soda 200 220 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:...
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
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...
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...
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Based on the table below, calculate nominal GDP real GDP, the GDP deflator, and the infation...
Based on the table below, calculate nominal GDP real GDP, the GDP deflator, and the infation rate in each year and fill in the missing parts of the table Use 2010 as the base year Instructions: Round nominal and real GDP values to two decimal places. Round GDP deflator and inflation rate values to the nearest whole number Quantity Price of Quantity Price of Real GOP ($) GOP deflator Inflation rate (%) Year of orange of beach beach ball 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? $
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...
Attempts: Average: 14 5. Real versus nominal GOP Consider a simple economy that produces two goods:...
Attempts: Average: 14 5. Real versus nominal GOP Consider a simple economy that produces two goods: cupcakes and erasers. The following table shows the prices and quantities of the goods over a three-year period Erasers Price Quantity (Number of cupcakes) 120 130 130 Price Year 2012 2013 2014 Quantity (Number of erasers) 195 195 145 (Dollars per cupcake) (Dollars per eraser) Use the information from the preceding table to fill in the following table Nominal GDP Year (Dollars)(Base year 2012,...
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. Quantity of Jeans Year 2004 2005 Price of Soda €1.00 1.00 Quantity of Soda 200 220 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:...
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
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...
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...
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?$O
Based on the table below, calculate nominal GDP real GDP, the GDP deflator, and the infation rate in each year and fill in the missing parts of the table Use 2010 as the base year Instructions: Round nominal and real GDP values to two decimal places. Round GDP deflator and inflation rate values to the nearest whole number Quantity Price of Quantity Price of Real GOP ($) GOP deflator Inflation rate (%) Year of orange of beach beach ball GDP...
Attempts: Average: 14 5. Real versus nominal GOP Consider a simple economy that produces two goods: cupcakes and erasers. The following table shows the prices and quantities of the goods over a three-year period Erasers Price Quantity (Number of cupcakes) 120 130 130 Price Year 2012 2013 2014 Quantity (Number of erasers) 195 195 145 (Dollars per cupcake) (Dollars per eraser) Use the information from the preceding table to fill in the following table Nominal GDP Year (Dollars)(Base year 2012,...
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