3. An economy only produces chips and cookies. The following table lists prices and productionfor the years 2020 and 2021:20202021PricesChips107Cookies56QuantitiesChips79Cookies1112a. What was nominal GDP for the years 2020 and 2021?b. What is the real GDP for the years 2020 and 2021? Assume 2020 is the base year.c. What is the GDP Deflator for the years 2020 and 2021?d. What is the inflation rate in 2021?

3. An economy only produces chips and cookies. The following table lists prices and production for the years 2020 and 2021: 2020 2021 Prices Chips 10 7 Cookies 6 Quantities Chips 7 Cookies 11 12 a What was nominal GDP for the years 2020 and 2021? b. What is the real GDP for the years 2020 and 2021? Assume 2020 is the base year. c. What is the GDP Deflator for the years 2020 and 2021? d. What is the inflation rate in 2021?

3. An economy only produces chips and cookies. The following table lists prices and production for the years 2020 and 2021: 2020 2021 Prices Chips 10 7 Cookies 6 Quantities Chips 7 Cookies 11 12 a What was nominal GDP for the years 2020 and 2021? b. What is the real GDP for the years 2020 and 2021? Assume 2020 is the base year. c. What is the GDP Deflator for the years 2020 and 2021? d. What is the inflation rate in 2021?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Measuring A Nation's Income

Section: Chapter Questions

Problem 7QR

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Similar questions

Last year, a small nation with abundant forests cut down 200 worth of trees. It then turned 100 worth of trees into 150 worth of lumber. It used 100 worth of that lumber to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nations GDP? In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves?
Explain briefly whether each of the following would cause GDP to overstate or understate the degree of change in the broad standard of living. The environment becomes dirtier The crime rate declines A greater variety of goods become available to consumers Infant mortality declines
Which of the following are included in GDP, and which are not? The cost of hospital stays The rise in life expectancy over time Child care provided by a licensed day care center Child care provided by a grandmother A used car sale A new car sale The greater variety of cheese available in supermarkets The iron that goes into the steel that goes into a refrigerator bought by a consumer.
What are the two main difficulties that arise in comparing different comparing GDP?