In May 2013, the value of the Consumer Price Index (CPI) in a certain country, Polonia,...
In May 2013, the value of the Consumer Price Index (CPI) in a certain country, Polonia, reached an all-time high of 228 index points and per capita nominal GDP was $48 comma 500. In January 1950, the CPI was at its lowest at 46 index points. Per capita nominal GDP in 1950 was $8 comma 000. Calculate real GDP per capita for 1950 by converting that year's nominal GDP per capita into current (2013) dollars. For 1950, real GDP per capita (in 2013 dollars) was
Homework Answers
Nominal GDP per capita in 1950 = $8,000
CPI in 1950 = 46
CPI in 2013 = 228
Calculate the real GDP per capita in 1950 -
Real GDP per capita in 1950 = Nominal GDP per capita * [CPI in 2013/CPI in 1950]
Real GDP per capita in 1950 = $8,000 * [228/46]
Real GDP per capita in 1950 = $39,652.17
The real GDP per capita in 1950 (in 2013 dollars) was $39,652.17
Add Answer to:
In May 2013, the value of the Consumer Price Index (CPI) in a
certain country, Polonia,...
Consider the following data of an economy in a certain year: Item Private consumption expenditures Value($)...
Consider the following data of an economy in a certain year: Item Private consumption expenditures Value($) 1,500 Private investment expenditures 500 Government expenditures on final goods and services 500 Tax revenue 800 Transfer payment 300 Total exports of goods 800 Total exports of services 1,500 Total imports of goods 1,000 Total imports of services 500 What is the Gross Domestic Product (GDP) of this economy?(6 marks) What are the government's budget balance and trade balance respectively (4marks) Suppose the GDP...
3. Consider the following information about two countries: (12 points) Country G Country B Population 27,499,924...
3. Consider the following information about two countries: (12 points) Country G Country B Population 27,499,924 11,138,234 Official exchange rate 4.79 cedi per dollar 6.91 boli per dollar Nominal GDP 217.75 billion cedi 261.06 billion boli Price index 120 110 A basket of commonly purchased goods has the following costs: $350 in the U.S., 840 cedi in Country G, and 1,575 boli in Country B. Real values should be calculated in base year currency. a. Calculate RGDP per capita in...
ASSIGNMENT #5 9. One way the consumer price index (CPI) differs from the GDP chain price...
ASSIGNMENT #5 9. One way the consumer price index (CPI) differs from the GDP chain price index is that the CPI: uses current year quantities of goods and services b. a. includes separate market baskets of goods and services for both base and current years. includes only goods and services bought by typical urban consumers. d. C. is bias free. 10. Suppose a market basket of goods and services costs $1,000 in the base year and the consumer price index...
1) The Consumer Price Index (CPI) is a fixed basked price index. Which of the following...
1) The Consumer Price Index (CPI) is a fixed basked price index. Which of the following is a potential problem with fixed basket price indices? A) A fixed basket approach tends to overestimate the rate of inflation, because people tend to buy more of things as they get more expensive. B) A fixed basket approach tends to overestimate the rate of inflation, because people tend to buy less of things as they get more expensive. C) A fixed basket approach...
II. Adjusting Data to Account for Inflation 2019 real value value at time t x (2019...
II. Adjusting Data to Account for Inflation 2019 real value value at time t x (2019 CPI CPI at time t) A. Given the data below, calculate the 2019 equivalent sales for each movie. Who is the real all-time worldwide box office champ? Year Movie Nominal Worldwide CP Ticket Revenue 2019 (2019-252) Equivalent les 7.02 M 4.3 M 1939 Gone with the Wind 1974 Godfather II 1997 Titanic 2009 Avatar 2015 Star Wars: The Force 390M $100M $2.2B $2.8B $2.1B...
3. The Consumer Price Index (CPI) represents the average price of goods that households consume. Many...
3. The Consumer Price Index (CPI) represents the average price of goods that households consume. Many thousands of goods are included in such an index. Here consumers are repre- sented as buying only food (pizza) and gas as their basket of goods. Below is a representation of the kind of data the Bureau of Economic Analysis (BEA) collects to construct a consumer price index. In the base year, 2008, both the prices of goods purchased and the quantity of goods...
27. One shortcoming of using the Consumer Price Index to measure the cost of living is that a. changes in the quali...
27. One shortcoming of using the Consumer Price Index to measure the cost of living is that a. changes in the quality of goods may not be accounted for in computing the index. b. All of the above are problems in using the CPL c. the components of the market basket are changed infrequently d. changes in consumer spending habits are not accounted for in computing the index 28. Fiscal policy refers to changes in t o affect overall spending...
21. In 2012, newspapers reported that the annual Consumer Price Index in 2011 was 120.0. From...
21. In 2012, newspapers reported that the annual Consumer Price Index in 2011 was 120.0. From this, we can conclude that a typical market basket in 2011 more than the same market would have cost basket purchased in a. 20%; the base year b. 120%; the base year c. 120%; 2010 d. 20%; 2010 22. The table below gives information on the the prices of three common school supplies in 2010 and 2011 and the quantities of each school supply...
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...
Year 2000 GDP Deflator (Price Index, 2009 = 100) 81.9 83.8 85.0 2001 2002 2003 2004...
Year 2000 GDP Deflator (Price Index, 2009 = 100) 81.9 83.8 85.0 2001 2002 2003 2004 2005 & 2007 Nominal GDP (in Billions of Dollars) 9,817 10.128 10.469 10,960 11,685 12,422 13,178 13,808 14,291 13,939 14,524 15,518 16,163 16,768 17,393 18,037 18,569 2008 2009 2010 2011 2012 2013 2014 2015 2016 100.0 101.2 103.3 105.2 106.7 108.8 110.0 111.4 Instructions: Enter your responses rounded to the nearest billion. a. Calculate real GDP for 2015 using 2007 prices. $0 billion b....
3. Consider the following information about two countries: (12 points) Country G Country B Population 27,499,924 11,138,234 Official exchange rate 4.79 cedi per dollar 6.91 boli per dollar Nominal GDP 217.75 billion cedi 261.06 billion boli Price index 120 110 A basket of commonly purchased goods has the following costs: $350 in the U.S., 840 cedi in Country G, and 1,575 boli in Country B. Real values should be calculated in base year currency. a. Calculate RGDP per capita in...
ASSIGNMENT #5 9. One way the consumer price index (CPI) differs from the GDP chain price index is that the CPI: uses current year quantities of goods and services b. a. includes separate market baskets of goods and services for both base and current years. includes only goods and services bought by typical urban consumers. d. C. is bias free. 10. Suppose a market basket of goods and services costs $1,000 in the base year and the consumer price index...
1) The Consumer Price Index (CPI) is a fixed basked price index. Which of the following is a potential problem with fixed basket price indices? A) A fixed basket approach tends to overestimate the rate of inflation, because people tend to buy more of things as they get more expensive. B) A fixed basket approach tends to overestimate the rate of inflation, because people tend to buy less of things as they get more expensive. C) A fixed basket approach...
II. Adjusting Data to Account for Inflation 2019 real value value at time t x (2019 CPI CPI at time t) A. Given the data below, calculate the 2019 equivalent sales for each movie. Who is the real all-time worldwide box office champ? Year Movie Nominal Worldwide CP Ticket Revenue 2019 (2019-252) Equivalent les 7.02 M 4.3 M 1939 Gone with the Wind 1974 Godfather II 1997 Titanic 2009 Avatar 2015 Star Wars: The Force 390M $100M $2.2B $2.8B $2.1B...
27. One shortcoming of using the Consumer Price Index to measure the cost of living is that a. changes in the quality of goods may not be accounted for in computing the index. b. All of the above are problems in using the CPL c. the components of the market basket are changed infrequently d. changes in consumer spending habits are not accounted for in computing the index 28. Fiscal policy refers to changes in t o affect overall spending...
21. In 2012, newspapers reported that the annual Consumer Price Index in 2011 was 120.0. From this, we can conclude that a typical market basket in 2011 more than the same market would have cost basket purchased in a. 20%; the base year b. 120%; the base year c. 120%; 2010 d. 20%; 2010 22. The table below gives information on the the prices of three common school supplies in 2010 and 2011 and the quantities of each school supply...
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...
Year 2000 GDP Deflator (Price Index, 2009 = 100) 81.9 83.8 85.0 2001 2002 2003 2004 2005 & 2007 Nominal GDP (in Billions of Dollars) 9,817 10.128 10.469 10,960 11,685 12,422 13,178 13,808 14,291 13,939 14,524 15,518 16,163 16,768 17,393 18,037 18,569 2008 2009 2010 2011 2012 2013 2014 2015 2016 100.0 101.2 103.3 105.2 106.7 108.8 110.0 111.4 Instructions: Enter your responses rounded to the nearest billion. a. Calculate real GDP for 2015 using 2007 prices. $0 billion b....
Most questions answered within 3 hours.
-
QUESTION 8
Both of these statements will store the same value in the
variable $number
$number...
asked 11 minutes ago -
The price of 1 lb of potatoes is $1.75. If all the potatoes sold
today at...
asked 1 hour ago -
Garcia Company issues 20.00%, 15-year bonds with a par value of
$470,000 and semiannual interest payments....
asked 1 hour ago -
In C++ Programming, Try using loops only.
This lab demonstrates the use of the While Loop...
asked 1 hour ago -
Effect of DCMU and sodium azide on Chlamydomonas? We did an
experiment where we had Chlamydomonas...
asked 2 hours ago -
1a) According to the ideal gas law, _______________.
a. a gas has infinite volume at absolute...
asked 4 hours ago -
Oakdale Fashions, Inc. had $245,000 in 2018 taxable income.
Using the tax schedule in Table 2.3...
asked 4 hours ago -
The marketing class at CSUS had an average score of 150. An
educational analyst determined that...
asked 5 hours ago -
Justin Case has purchased a $250 000 home by putting 20 % down
and taking out...
asked 5 hours ago -
1. In a labor market, marginal cost for a firm is
____________.
a. recruiting cost
b....
asked 6 hours ago -
On January 1, 2019, ABC Company issued $60,000,000 of 20-year,
10.5% bonds when the market rate...
asked 6 hours ago -
39.4% of US homes continue to use a landline in addition to cell
phone service. 3...
asked 7 hours ago