My Compromise

The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP for each decade jump. Indicate in each calculation whether you are inflating or deflating the nominal GDP data.

Question 34 Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the questions that follow: Assume that the base year is 2012. What was the growth rate of real GDP between the two years?

i. Calculate the growth rate of real GDP for each year from 1994 to 1997.

Explain the corresponding impact on total revenue for each of the three price ranges identified in part G.

If GDP is increasing by 3% per year how long will it take GDP to double?

In a monopolistically competitive industry, the goods sold, while not perfect substitutes, can be viewed as acceptable substitutes by most people. As a result, if Firm A raised the price of its good substantially, consumers would decrease the quantity demanded from Firm A and would move to other firms selling similar products. As a result, Firm A would sell few units at the new higher price. As the quantity a firm sells falls, so does its percentage of sales in the industry, also

The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP. Indicate in each calculation whether you are inflating or deflating the nominal GDP data.

What happens to the equilibrium price and quantity after these changes are put into effect? Do they go up, down or stay the same?P:_____down_____________Q:_____down__________________

It is basic economic principle that states that when there is an oversupply of a good or service, prices fall. When there is a high demand, prices tend to rise.


 A production run of toothpaste requires a fixed cost of $100,000. The variable cost per unit is $3.00. If 50,000 units of toothpaste will be sold during the next month, what sale price must be chosen in order to break even at the end of the month? Note: please report the result as a whole number, rounding if necessary and omitting the decimal point.
 


Answer

Elasticity of demand is measured as the percentage change in quantity demand divided by the percentage change in price .

First, from the textbook, Economic Growth, I collected the real GDP all over the world from 1995 to 2005. And I calculated the GDP growth rate in each country by the growth rate equation: g=[(Xt+1)/(Xt)](1/n)-1.

Real GDP can be calculated with the use of prices derived from a given base year, and this helps in the adjustment to changes in price. Through this perspective, it becomes possible for the real GDP to measure accurately changes relating to output

Based on the above data gathered from multiple credible sources we suggest that the percentage changes in real GDP will increase in the coming four five years. The value which we predict that the variable will take is about or in between the value of 2-3%.This value is based on the factors which have been mentioned before. The trends which these factors will take will in reality lead to the true value but based on the previous forecasts and historical data it can be safely assumed that the value we have suggested will be nearer to the true value with a small amount of random error involved in the value. Also the value will only fluctuate drastically from the true value if any unforeseeable or uncontrolled factors like natural disasters, multinational bankruptcy or war takes place with in the nation or between two nations.

Gross Domestic Product (GDP) economic statistics are one of the most closely watched stats throughout each country. In the charts listed above, the nominal GDP is greater than real GDP in each quarter of 2016 due to the nominal GDP reflecting current GDP at current price and real GDP reflecting current GDP at past year prices. Also, the chart reflects that the nominal GDP was greater than the real GDP for each quarter of 2016 due to the value of the nominal GDP sub-categories (personal consumption expenditures, gross private domestic investments, and government consumption expenditures and gross investment) all being significantly higher than the same sub-categories listed under the real GDP. The nominal GDP reflects the prices that are