5) (KEY QUESTION) Consider the following data assuming that these are the only products produced and consumed in the economy: Product 2019 Quantity 2019 Price (S) 2020 Quantity 2020 Price (S) 14 18 16 13 Beer Chocolate 15 11 17 12 Using 2020 as the base year answer the following questions: a. What was the nominal GDP in 2019 and 2020? What was the real GDP in 2019 and 2020? b. c. What was the GDP deflator in 2019 and 2020? 32
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Q: 5) (KEY QUESTION) Consider the following data assuming that these are the only products produced and…
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Please solve part a, b & c
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- 8- India and China are the two major economies in the Asian continent. Both countries have a trillion-dollar GDP. Suppose to calculate the GDP of the year 2021, India has decided to use the prices and quantities of the year 2021 whereas China decided to use the prices of 2020 and quantities of 2021. You are required to answer the following. a) What the strategy adopted by India to calculate the GDP of the country. b) What the strategy adopted by China to calculate the GDP of the country. c) Which strategy is better? Why?Question 2 Suppose production and prices of food and clothing (the only two goods produced in this economy) in 2006 and 2007 are as follows: (base year = 2006) Year Quantity of Food Price of Food Quantity of Clothing Price of Clothing 2006 20 $15 15 $5 2007 60 $18 30 $6 Calculate: (i) nominal and real GDP in 2006 and 2007, (ii) the GDP deflator (iii) the growth rate in real output.Prepare a chart that compares India, Spain, and South Africa based on the data you find. Describe the key differences between the countries. Rank these as high-, medium-, and low-income countries, explain what is surprising or expected about this data.
- 19- In an economy there is a 15.2 % fall in the consumer spending on the same basket of goods and services between the years 2015 and 2016. This means that there is ____. a. Deflation b. Rise in Price level c. No change in price level d. InflationQUESTION 18 A policeman’s salary would fall under which component of GDP? A. consumer spending B. private investment C. government purchase D. net exports1. Suppose an economy produces steel, wheat, and oil. The steel industry produces $80,000 in revenue, spends $4,000 on oil, $8,000 on wheat, pays workers $60,000. The wheat industry produces $120,000 in revenue, spends $20,000 on oil, $10,000 on steel, and pays workers $80,000. The oil industry produces $180,000 in revenue, spends $20,000 on wheat, $20,000 on steel, and pays workers $80,000. There is no government. There are neither exports nor imports, and none of the industries accumulate or deaccumulate inventories. Calculate GDP using the production and income approaches. Please provide what rules/formulas are used to solve this and the final answer.
- 14. The unemployed are those people who do not have jobs. are not employed but are seeking work are not working are not working8. Includes all income earned: wages, profits, rent, and profit income within an Economy. Question 8 options: Trade Balance Net Income Gross Domestic Product National Income11-The selling price of a product in Oman is higher than the price in Dubai although both products are having the same nature. Customers are buying the product from Dubai due to the price differences. What will be the effect of the customers buying the products from Dubai? (1) Due to this, appreciation in the value AED (United Arab Emirates Dirham) relative to OMR, (2) Due to this, depreciate in the value AED (United Arab Emirates Dirham) relative to OMR, (3) Product sold in Oman market will decrease and the retail price will go down, (4) Product sold in Oman market will decrease and the retail price will go up, (5) The demand for the product and prices will increase in Dubai a. (2) and (3) only b. (1), (2), (3), (4) and (5) c. (1) and (2) only d. (1), (3) and (5) only
- QUESTION 2 The table below gives the values of different expenditures in the United States during 1999. Answer the following questions about the United States a) Define the concept of Gross Domestic Product (GDP) b) Calculate the value of net exports of goods and services in 1999? c) Calculate (nominal) GDP equal to in 1999? d) What was the (nominal) value of total production equal to in 1999? Note: 1. No need hand writing 2. Please clear answer no whois one a,b,c,dAssessment 1 Which one of the following statements is INCORRECT? Select one: A Real GDP is a measurement of GDP in which the quantities produced are valued at the prices in a base year, in other words, it considers inflation. B. GDP at constant prices measures the actual physical volume of production valued at the prices in a base year. C. GDP at current prices takes a continuous and considerable rise in the prices of goods and services into consideration. D. An increase in the prices of goods and services produced might increase the nominal GDP over time.22 - Which of the following does GDP measure? a) Non-market economic activities B) Economic transactions in the market C) Illegal economic activities D) informal economy TO) Quality of goods and services