2. Prime Minister Derpington wants to know about the difference between different macro variables like nominal GDP, real GDP, and how inflation links the two together. She hasn't quite figured out what the difference is yet, and she really needs your help. The following table shows the quantity (in millions) of each good sold as well as the price (in the Derpistani currency, the "Bone" B). Table 1: Derpistan's Economy 2016 2016 2017 2017 2018 2018 Quantity 15 Good Price Quantity 15 Price Quantity 14 Price Friskies Cat Food 12 17 15 Cat Litter 3 50 51 7 52 Mango Salsa Mr. Bill Stuffed Toys Squirt Bottles Canned Tuna 80 8 80 9. 80 10 7 12 13 15 12 18 19 19 15 11 10 10 Insulin 10 12 66 13 56 66 Catnip 12 29 (a) Calculate nominal GDP for 2016, 2017, and 2018. (b) Using 2016 prices, what is Chirpistan's real GDP in 2017 and 2018?

2. Prime Minister Derpington wants to know about the difference between different macro variables like nominal GDP, real GDP, and how inflation links the two together. She hasn't quite figured out what the difference is yet, and she really needs your help. The following table shows the quantity (in millions) of each good sold as well as the price (in the Derpistani currency, the "Bone" B). Table 1: Derpistan's Economy 2016 2016 2017 2017 2018 2018 Quantity 15 Good Price Quantity 15 Price Quantity 14 Price Friskies Cat Food 12 17 15 Cat Litter 3 50 51 7 52 Mango Salsa Mr. Bill Stuffed Toys Squirt Bottles Canned Tuna 80 8 80 9. 80 10 7 12 13 15 12 18 19 19 15 11 10 10 Insulin 10 12 66 13 56 66 Catnip 12 29 (a) Calculate nominal GDP for 2016, 2017, and 2018. (b) Using 2016 prices, what is Chirpistan's real GDP in 2017 and 2018?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter19: Measuring Economic Performance

Section: Chapter Questions

Problem 1P

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Similar questions

Why is the GDP deflator not an accurate measure of inflation as it impacts a household?
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1. Consider the following data on Prices and Quantities of T-Shirts and Pajamas on the attached image. I. What wasthe growth rate ofNominalGDP between 2016and 2017?II. Was the growth rate of real GDP higher or lower that the growth rate of nominalGDP?Explain. III. Using 2015 asthe base year, calculate the CPI for each year. IV. Calculate the inflation rate for 2015, 2016 and 2017.