Suppose GDP consists of wheat and rice. In 2012, 200 kg of wheat are sold at $4 per kg, and 100 kg of rice are sold at...

Question

Question

Suppose GDP consists of wheat and rice. In 2012, 200 kg of wheat are sold at $4 per kg, and 100 kg of rice are sold at $2 per

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Solution: Nominal GDP $1000; Real GDP $400

Working:

	Wheat		Rice
	Q	P	Q	P
2012	200	4	100	2
2011	200	1	100	2

Nominal GDP is computed using current prices while Real GDP is computed using base year price

Nominal GDP: 200 * 40 + 100 * 2 = $1000

Real GDP: 200 * 1 + 100 * 2 = $400

Add a comment

Answer 2

Similar Homework Help Questions

Question 1 1 pts Suppose GDP consists of wheat and rice. In 2005, 20 bushels of...

Question 1 1 pts Suppose GDP consists of wheat and rice. In 2005, 20 bushels of wheat are sold at $4 per bushel, and 10 bushels of rice are sold at $2 per bushel. In 2004, 20 bushels of wheat are sold at $2 per bushel and 10 bushels of rice are sold at $1 per bushel. Using 2004 as the base year, it follows that, for 2005. Nominal GDP is $100, real GDP is $50, and the GDP Deflator...
GDP Calculation. SHOW ALL YOUR WORK Q of Corn Q of P of P of Corn...

GDP Calculation. SHOW ALL YOUR WORK Q of Corn Q of P of P of Corn Q of Rice P of Rice Wheat Wheat 100 2016 $ 5 $6 50 70 60 $10 100 $2 2017 2018 200 $ 10 $ 9 90 $ 3 $3 300 $7 80 Calculate Nominal GDP 2016: 2017: 2018: If Total Spending (Nominal GDP) rises from one year to the next, what are the 2 potential reasons? 1. 2 Calculate Real GDP (Base year...
Suppose that, during 2012, nominal GDP was $10,082 billion. During 2012, the value of the Consumer Price Ind...

Suppose that, during 2012, nominal GDP was $10,082 billion. During 2012, the value of the Consumer Price Index was 177.1 (using 1999 as the base year). Estimate the real GDP for 2012 4. In 2015 US Real GDP was $16,547.6 billions of dollars; in 2016, US Real GDP was $16,851.4 billions of dollars. Estimate the economic growth rate for the period 2016-2015.?

2010 Prices 2010 Quantity 2011 Prices 2011 Quantity 2012 Prices 2012 Quantity Apples $3 5 $3...

2010 Prices 2010 Quantity 2011 Prices 2011 Quantity 2012 Prices 2012 Quantity Apples $3 5 $3 11 $3 8 Oranges $2 9 $9 3 $1 10 Nominal GDP Real GDP A. Calculate the nominal and the real GDP in each year for the economy. 2010 is your base year. B. If the real GDP was $150 in 2013 and $182 in 2014, what would the GDP growth rate would be? What would this mean? C. If the nominal GDP was $250 in 2014...
Table of data for Fisherville. The base year is 2010. GDP Deflator 100 120 150 200...

Table of data for Fisherville. The base year is 2010. GDP Deflator 100 120 150 200 Year 2010 2011 2012 2013 Nominal GDP $2000 $3000 $3750 $6000 22. Use the above table for Fisherville. What is the rate of inflation across the entire period from 2010-2013? a. b. с. d. 100% 25% 20% None of the above 23. Use the above table for Fisherville to answer the following question. Which of the following is NOT correct? a. This economy experienced...
The country of Sylvania produces and consumes only three goods: Red Bull, pizza, and T-shirts. The...

The country of Sylvania produces and consumes only three goods: Red Bull, pizza, and T-shirts. The quantity produced and price of each good in 2011 and 2012 are given in the following table: 20112012 QuantityPriceQuantityPriceT-Shirts100$25110$25Red Bull (cans)500$1500$1.50Pizza (slices)1000$2900$4a. Calculate nominal GDP for 2011 and 2012.b. Using 2011 as the base year, calculate real GDP for 2011 and 2012.c. Based on your answer from part b, by what percent age did real GDP grow between 2011 and 2012?d. Now, calculate real GDP...

only answer for question 5 4. Calculate the Nominal GDP, Real GDP using 2019 as the...

only answer for question 5 4. Calculate the Nominal GDP, Real GDP using 2019 as the base year, and the GDP Deflator. Year Price of Milk Quantity of Milk Price of Honey Quantity of Honey 2017 $2 100 $4 200 2018 $4 100 $4 210 2019 $4 120 $6 220 4. Calculate the Nominal GDP, Real GDP using 2019 as the base year, and the GDP Deflator. Year Price of Milk Quantity of Milk Price of Honey Quantity of Honey...
5. Real versus nominal GDP Consider a simple economy that produces two goods: pencils and oranges....

5. Real versus nominal GDP 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 (Dollars per orange) 2 4 4 Price Year 2012 2013 2014 Quantity (Number of pencils) 145 165 110 Quantity (Number of oranges) 195 225 165 (Dollars per pencil) Use the information from the preceding table to fill in the following table Nominal GDP Real GDP (Dollars)...
34. All of the following will increase potential real GDP except a. an increase in the...

34. All of the following will increase potential real GDP except a. an increase in the amount of natural resources available. b. an increase in the percentage of the population that attends college. c. an increase in the cost of living (money prices). d. an improvement in technology. 35. Which of the following is not a problem associated with Real GDP as a measure of social welfare? a. It excludes intermediate goods as a separate entry. b. It does not...

GDP Inflation Deflator Rate YEAR CPI GDP %GDP | Real GDP | %RGDP (%CPI) |(2015-100) 2012...

GDP Inflation Deflator Rate YEAR CPI GDP %GDP | Real GDP | %RGDP (%CPI) |(2015-100) 2012 231.2 95.43 1619 2013 234.72 97.11 16785 2014 236.27 98.94 17522 2015 237.83 100.00 18219 2016 242.7 01.09 1870 2017 247.91 103.02 19485 1. Calculate the annual inflation rate using the CPI. 2. Calculate the annual GDP growth rate using the GDP. 3. Explain how the inflation rate and the GDP growth have been moved. 4. Calculate the real GDP using GDP deflator by...

Suppose GDP consists of wheat and rice. In 2012, 200 kg of wheat are sold at $4 per kg, and 100 kg of rice are sold at...

Homework Answers

Add Answer to:
Suppose GDP consists of wheat and rice. In 2012, 200 kg of wheat are sold at $4 per kg, and 100 kg of rice are sold at...

Post as a guest

Earn Coins

Question 1 1 pts Suppose GDP consists of wheat and rice. In 2005, 20 bushels of...

GDP Calculation. SHOW ALL YOUR WORK Q of Corn Q of P of P of Corn...

Suppose that, during 2012, nominal GDP was $10,082 billion. During 2012, the value of the Consumer Price Ind...

2010 Prices 2010 Quantity 2011 Prices 2011 Quantity 2012 Prices 2012 Quantity Apples $3 5 $3...

Table of data for Fisherville. The base year is 2010. GDP Deflator 100 120 150 200...

The country of Sylvania produces and consumes only three goods: Red Bull, pizza, and T-shirts. The...

only answer for question 5 4. Calculate the Nominal GDP, Real GDP using 2019 as the...

5. Real versus nominal GDP Consider a simple economy that produces two goods: pencils and oranges....

34. All of the following will increase potential real GDP except a. an increase in the...

GDP Inflation Deflator Rate YEAR CPI GDP %GDP | Real GDP | %RGDP (%CPI) |(2015-100) 2012...

Suppose GDP consists of wheat and rice. In 2012, 200 kg of wheat are sold at $4 per kg, and 100 kg of rice are sold at...

Homework Answers

Add Answer to: Suppose GDP consists of wheat and rice. In 2012, 200 kg of wheat are sold at $4 per kg, and 100 kg of rice are sold at...

Post as a guest

Earn Coins

Add Answer to:
Suppose GDP consists of wheat and rice. In 2012, 200 kg of wheat are sold at $4 per kg, and 100 kg of rice are sold at...