Why is the GDP so different from one another when you use a different base year...
Why is the GDP so different from one another when you use a different base year to calculate the GDP?
(Ex. using 2001 as base year to calculate 2019 GDP and then using 2019 as base year to calculate 2019 GDP)
Homework Answers
Answer:
the GDP is different from one another when we use a different base year to calculate the GDP because of the different prices in the base years as to calculate the GDP we multiply the quantities of goods and services of the year with the prices of the base year. the different years have different price levels so when we calculate by different base years with the change in prices the GDP also changes
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Why is the GDP so different from one another when you use a
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4. Calculate the Nominal GDP, Real GDP using 2019 as the base year, and the GDP...
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
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GDP Inflation Deflator Rate YEAR CPI GDP %GDP | Real GDP | %RGDP (%CPI) |(2015-100) 2012...
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Recall the method of calculating real GDP detailed in the chapter. As you may already have...
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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...
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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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
5. Will the multiplier effect on GDP be different when these events occur? Why or why not? a) Investment rises by 100; c) Exports rise by 100, b)Consumption rises by 100 at each level of GDP d)Government spending rises by 100 6. In an economy with no government sector, investment is 1,000, net exports are 100, and the consumption schedule is 3,000 3,500 4,000 4,500 5,000 5,500 2,100 2,500 2,900 3,300 3,700 4,100 Calculate the aggregate demand schedule, and find...
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...
Recall the method of calculating real GDP detailed in the chapter. As you may already have noticed, this method has a problem: in calculating aggregate output, this method weights the output of the various goods and services by their relative prices in the base year. Say, for example, a textbook costs $100 in the base year, and a laptop costs $2,000. This means that the laptop would have 20 times the weight of a book in calculating aggregate output. But...
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...
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