Below are some data from the land of milk and honey a)  Compute nominal GDP, real GDP, and the GDP deflator for each year, using 2017 as the base year. Hints: show steps.  b)  Compute the percentage change in nominal GDP, real GDP, and the GDP deflator in 2018 and 2019 from the preceding year. For each year, identify the variable that does not change. Explain in words why your answer makes sense. Hints: show steps.  c)  Did economic well-being rise more in 2018 or 2019? Explain.

Question

Below are some data from the land of milk and honey

  1. a)  Compute nominal GDP, real GDP, and the GDP deflator for each year, using 2017 as the base year. Hints: show steps. 

  2. b)  Compute the percentage change in nominal GDP, real GDP, and the GDP deflator in 2018 and 2019 from the preceding year. For each year, identify the variable that does not change. Explain in words why your answer makes sense. Hints: show steps. 

  3. c)  Did economic well-being rise more in 2018 or 2019? Explain.

 

Expand

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Economics

Macroeconomic models

Related Economics Q&A

Find answers to questions asked by students like you.

Q: The demand curve and supply curve for a perfectly competitive market are: Q = 500 – 5P and Q = 320 +...

A: Equating market demand = market supply, 500 - 5P = 320 + P 6P = 180 P = 30 Q = 320 + 30 = 350 (marke...

Q: "d" and "e" please

A: Click to see the answer

Q: Your grandmother likes old-fashioned yard salesand doesn’t understand why everyone is so excitedabou...

A: Consumer surplus refers to the difference between the price that the consumers are willing to pay fo...

Q: The following scenarios have been taken from actual answers to the Current Population Survey conduct...

A: Unemployment is a term referring to individuals who are employable and actively seeking a job but ar...

Q: Suppose that both wheat and corn have an income elasticity of 0.1 a. If the average income in the ec...

A: The income elasticity of demand conveys the responsiveness of the demand for a product to a change i...

Q: Because the two countries produce more rye and more jeans under specialization, each country is able...

A: Since you posted multiple questions, we will provide you the answer of first question. If you want a...

Q: 4- The gross domestic product (GDP) of a certain country was N(t) = t(+ 5t + 106 billion dollars t y...

A: GDP refers to the total value of finished goods and services that produced within the economic bound...

Q: What is the economic justifcation for the sticky infation assumption? Whatrole does this assumption ...

A: Sticky inflation refers to a situation when there is high and constant inflation rate in the economy...

Q: Suppose initially that the United States is consuming 4 boots and 8 shirts and Canada is consuming 1...

A: US consumes 4 boots and 8 shirts. Canada consumes 18 boots and 2 shirts. US can produce either 24 sh...

Q: Describe the mechanism by which supply creates its own demand.

A: Supply is the amount of output that producers or sellers are willing to sell in the market at differ...

Q: Who of the following would be included in the Bureau of Labor Statistics’ “unemployed” category? Mi...

A: Unemployment is defined as when an individual is willing to work but is unable to find any work. Acc...

Q: In the production possibilities model, economic decay is illustrated by: An inward shift of the p...

A: Economic decay means when economy's resources reduced and is able to produce lesser than before. 

Q: 15. The demand equation for a good is given by the equation: Qx = 520 – 20P, + 0.6 Y + 2.9P,. Find t...

A: Plugging given values, Qx = 520 - (20 x 10) + (0.6 x 700) + (2.9 x 21) = 520 - 200 + 420 + 60.9 = 80...

Q: The demand curve and supply curve for a perfectly competitive market are: Q = 500 – 5P and Q = 320 +...

A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for yo...

Q: With current technology, suppose a firm is producing 400 loaves of banana bread daily. Also, assume ...

A: Total cost is the sum of all the costs of the different inputs.  

Q: Question attahed in image

A: Since you have asked multiple question, we will solve the first question for you. If youwant any spe...

Q: (b) Why Law of diminishing return is more applicable in agriculture sector?

A: Law of diminishing return is more applicable in agriculture sector.

Q: If the price of a cinema ticket is 20, the price of a concert ticket is 40 and the income is 120, dr...

A: Budget constraint shows the combination of two goods a person can afford given its income level and ...

Q: Ypsilanti Market Research conducted a survey to find out whether people who earn more money purchase...

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question s...

Q: The table gives the demand and supply schedules of teenage labor.                               ...

A: Since you have posted multiple questions, first three questions have been answered for you. If you w...

Q: (a) Explain Implicit and Explicit cost with the help of suitable example?

A: To understand the concept of opportunity cost in the business activities, a producer classifies the ...

Q: Because of COVID-19 most people are staying indoors, yet they cannot afford online streaming movies,...

A: For Netflix,the coronavirus pandemic has been good business which lead to addition of millions of co...

Q: 1.Why is economics central to an understanding of the problems of development? 2. Is the concept of ...

A: Economics: It is the sociology that reviews how individuals cooperate with esteem; specifically, the...

Q: Unlike newspaper dispensing devices, soft drink dispensing machines do not permit people to take mor...

A: Utility refers to the satisfaction/benefit received by an individual/consumer consuming a product. I...

Q: Find marginal utility for each consumption level for both products and please show your work in Tabl...

A: The total utility refers to the utility that is derived out of the each additional unit of consumpti...

Q: 1. Describe the society having higher inflation.

A: Inflation is the decrease in a given currency's buying power over time. Quantitative estimation of t...

Q: I want to get answer to my question.

A: TC = total cost MC= marginal cost AC= average cost.  The prices of inputs are (4,6)  

Q: Refer to Table 6.6 . If the six people listed in the table are the only producers in the market and ...

A: Producers or sellers offer supply in the market at different price levels. Producer surplus is the d...

Q: Explain the link between well-performing financialmarkets and economic growth. Name one channelthrou...

A: Financial markets are markets in which funds are traded from individuals with surplus funds to indiv...

Q: Define Availability of substitutes?

A: Substitutes are the goods which can be used in place of each other with equal ease. 

Q: On average, does an increase in taxes raise or lower real GDP? If taxes as a percent of GDP go up 1 ...

A: Since you have posted a question with multiple sub-parts, we will solve first three sub- parts for y...

Q: Economics Question

A: Production possibility frontier shows the combination of two goods that can be produced with the giv...

Q: If aggregate demand

A: Aggregate demand shows the combination of real GDP at price level at which the goods market as well ...

Q: What is the importance of stages of production?

A: There are three stages of production,and they are important for businesses to understand and analyze...

Q: Why Law of diminishing return is more applicable in agriculture sector?

A: In the production process, different factors are used to produce the final output. Each factor has i...

Q: Why Law of diminishing return is more applicable in agriculture sector?

A: The Law of diminishing returns states that the marginal product of the variable factor will ultimate...

Q: Imagine that you are a price-taking firm with the following total cost schedule. Q            1     ...

A: Supply will be at that point where price is equal to the marginal cost . Therefore, at a given price...

Q: The factor(s) which cause(s) a movement along the demand curve include(s):

A: Demand curve: - demand curve is the graphical way of showing the relationship between the quantity d...

Q: 4) Use the figure below to answer the following questions.   Figure 1 Consider the demand curve in ...

A: Consumer surplus is the consumer’s willing to pay over the price which a producer charges for a comm...

Q: Explain Implicit and Explicit cost with the help of suitable example?

A: Firms undertake production by employing many resources. There are hiring costs of inputs like labor ...

Q: looking for help finding the elasticity of this problem, and if it would be considered Unit elastic,...

A: QD=300-6PQS=2P-20 Find: 1) Equilibrium Price and Quantity. 2) Price elasticity of demand at equilibr...

Q: Read each statement below and indicate if the price elasticity of demand for the product is most lik...

A: Price elasticity of demand: It is used for measuring how sensitive is the quantity demanded to its p...

Q: Could you solve the 4. question as follows shut down  and operate  TR= TFC=  TVC= TC = PROFİT= The d...

A: A firm shut down in the short run when it is not able to cover its variable cost in the short run by...

Q: If the AD curve were more steeply sloped, how would the economyrespond diferently to aggregate deman...

A: Demand shocks are the factors that are responsible for a temporary change in the level of aggregate ...

Q: In pure competition, each extra unit of output that a firm sells will yield a marginal revenue that ...

A: Pure competition is the market form in which there are large numbers of buyers and sellers that prod...

Q: Suppose the cross-price elasticity of demand between goods x and y is -1. How would the price of goo...

A: Cross-price elasticity of demand measures the response of change in demand for one product to a chan...

Q: If all workers and all jobs were the same such that all workers were equally well suited for all job...

A: If all workers are suitable for all types of jobs, then they would not be required to switch from on...

Q: answer D,E,F

A: Inflation is the rise in prices and decline in the value of the currency in a nation.

Q: Give an Example how a change in opportunity cost can effect behavior.

A: Opportunity cost: - opportunity cost is a forgone benefit which we could have earned by applying all...

Q: What is the role of education and training in the pursuit of economic prosperity?

A: Education is a strong reform driver, enhancing well-being and livelihoods, leading to social prosper...