Compare the nominal GDP growth rates and the real GDP growth rates for 2015, 2016, and 2017. What do you conclude? Which of the two accurately measures the GDP and why?
Q: The table below gives economic data for the small island economy of St. Artie's. All data was…
A: Given Values for 2017 :- GDP deflator = 100 Nominal GDP = 2,000,000 Real GDP = Nominal GDP/ GDP…
Q: Suppose the nominal GDP of country X in 2013 was equal to 10000. The deflator index in 2014 was 107%…
A:
Q: What is the relationship between the growth rate of real GDP and the growth rate of real GDP per…
A: Real gross domestic product or real GDP is the value of all goods and services produced by an…
Q: a) Compute nominal GDP, real GDP, and the GDP deflator for each year, using 2010 as the base year.…
A: .The nominal GDP of a country is calculated using current prices and is not adjusted for inflation.…
Q: If US per capita GDP is $50,000 and grows at 3% per year, what will US per capita GDP be in 70…
A: Given: US per capita GDP=Present value=PV=$50,000Growth rate=i=3%n=70 years
Q: Economists often are interested in percentage change from one period to the next. The percentage…
A: GDP: Gross domestic product or GDP is the estimation of the final value of all the goods and…
Q: Why do we measure economic growth using Real GDP rather than Nominal GDP
A: Real GDP, It is the total value of goods and services produced Within a political boundary of a…
Q: Consider the following table. Year GDP Population 2019 13 million 1481 2020 20 million 1395…
A: GDP stands for Gross domestic product. It lay focus on how fast the economy is growing. Please find…
Q: The data below refers to the output produced and sold in Sustainaland; a hypothetical 2-good nation…
A: Real GDP is the value of the nominal GDP which is adjusted for inflation or rise in prices. Nominal…
Q: Aside from GDP, why we also can use the Human Development Index to measure the economic development?
A: The HDI is an index compiled and developed by the UN to measure the levels of social and economic…
Q: . Calculate the Real GDP for 2017. Show your calculation. 2. Did Suniland experience economic growth…
A: 1. Real GDP for 2017 = ( 900x3.50) + (2200x6) + (500x7) = 3150 + 13200 + 3500 = 19850 Hence, Real…
Q: what is the importance of calculating the growth rate of nominal GDP and real GDP?
A: NGDP refers to the value of all final G&S in a year that an economy produces.RGDP is an…
Q: a) Nominal GDP 2013, 2014 b) Real GDP 2013, 2014 c) GDP growth rate d) Deflator 2014
A: Nominal GDP measures the value of output in a given period at the prices of that period. To remove…
Q: The following table gives nominal GDP, real GDP, and the population for two years. Find per capita…
A: Gross Domestic Product is the sum of all value added of a given economy. Value added is the…
Q: Suppose that real GDP in 2018 is $245,676 million and the population in 2018 is 4.8 million. Real…
A: Real GDP per capita is the ratio of GDP adjusted for inflation to the average population of a…
Q: Briefly differentiate between nominal and real GDP. Why is real GDP more relevant measure of…
A: The given question has been solved below.
Q: Aside from the GDP, what other measures may we use to better understand the level of development of…
A: Economic Development refers to the improvement in the living standard and quality of life eg. Life…
Q: What is the ratio of the GDP growth rate to the business cycle? Explain.
A: Economic development can be brought about by arbitrary variances, occasional vacillations, changes…
Q: In 2014, the GDP of Russia was $5500. Suppose that Russia has a growth rate of 3.4%. a. What is…
A: a. The GDP is the summation of the money value of all the final goods and services produced within…
Q: b) Use the production and price information in the table to calculate real GDP for 2016, 2017, and…
A: 2016 2017 2018 Product Q P Q P Q P Sugar Cane 240 0.8 240 1 300 1.15 Yo-Yos 600 2.5 700 3 750…
Q: The data below refers to the output produced and sold in Sustainaland; a hypothetical 2-good nation…
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: Per capita GDP and average annual incomes are much higher in Alberta than New Brunswick. New…
A: The Gross Domestic Product (GDP) is the total value added in a given economy (GDP). The difference…
Q: Why might per capita GDP be only an imperfect measure of a country's standard of living?
A: The main components or indicators of the GDP in an economy are the consumption, investment and…
Q: In 2004, the GDP of UK was $8200. Suppose that UK has a growth rate of 1.8%. a. What is Britain's…
A: The GDP refers to the price value of all final goods and services produced annually in a country.…
Q: Which of the components of GDP must increase if we are to experience greater rates of economic…
A: Hello, thank you for the question. Since there are multiple questions posted in the single question,…
Q: write a note by comparing Per-capital GDP and Human Development Index as a measure of Standard of…
A:
Q: Briefly differentiate between nominal and real GDP. Why is real GDP more relevant measure of…
A: In an economy, gross domestic product is highly used to make economic policies because it provide…
Q: Suppose that real GDP was $2265 billion in 2018 and $2285 billion in 2019. Calculate the growth rate…
A: Given:GDP in 2018=$2265GDP in 2019=$2285
Q: Nominal gross domestic product (GDP) increased from $15 trillion to $17 trillion, and the price…
A: Given: The nominal GDP increases from = $15 trillion to $17 trillion The price level increases from…
Q: 1. Find per capita GDP when the population is 100 million and GDP is $2 trillion. 2. Find per…
A: The per capita gross domestic product (GDP) is a financial measure that calculates a country's…
Q: The data below refers to the output produced and sold in Sustainaland; a hypothetical 2-good nation…
A: Since, the question you have asked has multiple parts, we will be answering the first three parts…
Q: Suppose nominal GDP in 2018 was $180,000,000 and in 2019 it was $185,000,000. The GDP price index in…
A: 1. Real GDP = nominal GDP / price level Price Index 2018 = 150/100 = 1.5 Price Index 2019 = 153/100…
Q: Use the table to answer the questions. Define productivity as GDP per worker, and please enter all…
A: GDP per workers refers that how much per worker gives their share in GDP growth it is also known as…
Q: Why do economists use nominal GDP to compare different countries at a single point in time, but use…
A: Nominal GDP : When the GDP is measured in terms of the current market price and measures the value…
Q: GDP at 1990 Market Prices ($m) 120,140 120,207 127,250 139,840 Source: Singapore Dept. of Statistics…
A: (A) Calculate of the annual growth rate of Singapore economy, {( GDP current year / GDP previous…
Q: 3. In 2011, this country's GDP deflator was 4. In 2011, this country's real GDP growth rate was 5.…
A: The GDP deflator, also called implicit price deflator, is a measure of inflation. It is the ratio of…
Q: Use the following information to calculate the growth rate. Round to two decimal places. Nominal…
A: Gross domestic product (GDP) is the total value of products and services manufactured in an economy…
Q: What does GDP attempt to measure?
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: What is GDP? What is real GDP ? What is per capita GDP ? Why is our GDP shrinking in the ongoing…
A: The Gross Domestic Product is the summation of the money value of all the final goods and services…
Q: How does Standard of Living affect Quality of Life in terms of GDP?
A: Gross domestic product (GDP) is the sum of the monetary value of all the final products and services…
Q: In 2017, the GDP of UK was $2100. Suppose that UK has a growth rate of 2.3%. a. What is Britain's…
A: The GDP refers to the price value of all final goods and services produced annually in a country.…
Q: Quantity of Computers Year Price of Nominal Real GDP Nominal Real GDP Computers GDP (in 2015 GDP (in…
A: Nominal GDP = Price x Quantity Real GDP = Base Year Price x Quantity Year Quantity Price…
Q: Explain the two sources for potential GDP growth words and diagrams
A: GDP is a proportion of the worth of the merchandise in goods and administrations created in the…
Q: An economy produces three products, bags, computers and shirts. The prices and quantities of these…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Find per capita GDP when the population is 300 million and GDP is $1.5 trillion.
A: GDP is the value of all the goods and services produced in the economy in a specific period of time.…
Q: Between 2000 and 2017, real GDP per person grew, on average, 1% per year in the United States. Did…
A: Did this GDP growth benefit all Americans? --This GDP growth between 2000 and 2017 benefited the…
Compare the nominal
Step by step
Solved in 2 steps
- Unit 7 Practice Questions to be discussed in BBCStudents are expected to attempt the questions before attending the BBC Session.Selected questions will be discussed in the BBC Session.Question 1Suppose 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 FoodPrice of FoodQuantity of ClothingPrice of Clothing2006 20 $15 15 $52007 60 $18 30 $6Calculate nominal and real GDP in 2006 and 2007, the GDP deflator and the growth rate in real output.Question 2You have been employed as the chief economist for the economy UWI Land. The head statistician has provided you with the following…Please help with questions D & E: Consider an economy that produces and consumes shoes and houses. In the table below are data for two different users. 2000 2001 Price of a house $120,000 $145,000 Number of houses produced 1000 1050 Price of a pair of shoe $150 $170 Number of pairs of shoes produced 650,000 525,000 Year 2000 Year 2001 Price of a house $120,000 Price of a pair of shoes $150, $170 Number of houses produced 1,000 Number of pairs of shoes 650,000, 525,000 (a) What is the Consumer Price Index (CPI)? (b) Calculate the CPI for both years. (c) Calculate the rate of inflation for 2001 using the CPI. (d) Calculate the GDP deflator for both years. (e) Calculate the rate of inflation for 2001 using the GDP deflator. Please help with questions D & E only.Please help with questions D & E: Consider an economy that produces and consumes shoes and houses. In the table below are data for two different users. 2000 2001 Price of a house $120,000 $145,000 Number of houses produced 1000 1050 Price of a pair of shoe $150 $170 Number of pairs of shoes produced 650,000 525,000 Year 2000 Year 2001 Price of a house $120,000 Price of a pair of shoes $150, $170 Number of houses produced 1,000 Number of pairs of shoes 650,000, 525,000 (a) What is the Consumer Price Index (CPI)? (b) Calculate the CPI for both years. (c) Calculate the rate of inflation for 2001 using the CPI. (d) Calculate the GDP deflator for both years. (e) Calculate the rate of inflation for 2001 using the GDP deflator.
- Tornadoes destroy factories and a severe drought ruins crops. Draw a graph that shows 3 curves and find the inital and resulting PL and GDP.(a) Calculate GDP using the Income and Expenditure Approach. (all figures are in billions of dollars): Item Amount ($)Government purchase of goods and services 1,721.6Exports 1,096.3Receipts of factor income from the rest of the world 382.7Depreciation (consumption of fixed capital) 990.8Net fixed Investments 688.2Corporate income taxes 265.2Consumption expenditures 6,739.4Indirect business taxes 664.6Imports 1,475.8Payments of factor income to the rest of the world 343.7Inventory change 56.5Social security contributions 702.7Undistributed corporate profits (retained earnings) 130.3Government transfer and interest payments 1,366.3Personal interest payments 286.2Personal taxes 1,235.7(b) Using the following data calculate:(i) The number of persons employed. (ii) The number of persons unemployed. (iii) The labour force. (iv) The Labour Force Participation rate. (v) The “official” unemployment rate. 987,156 Currently Working 23,000 volunteer workers9845 (ages 13-14) looking for work…(a) Calculate GDP using the Income and Expenditure Approach. (all figures are in billions of dollars):Item Amount ($)Government purchase of goods and services 1,721.6Exports 1,096.3Receipts of factor income from the rest of the world 382.7Depreciation (consumption of fixed capital) 990.8Net fixed Investments 688.2Corporate income taxes 265.2Consumption expenditures 6,739.4Indirect business taxes 664.6Imports 1,475.8Payments of factor income to the rest of the world 343.7Inventory change 56.5Social security contributions 702.7Undistributed corporate profits (retained earnings) 130.3Government transfer and interest payments 1,366.3Personal interest payments 286.2Personal taxes 1,235.7 (b) Using the following data calculate: (i) The number of persons employed. (ii) The number of persons unemployed. (iii) The labour force. (iv) The Labour Force Participation rate. (v) The “official” unemployment rate. 987,156 Currently Working 23,000 volunteer workers9845 (ages 13-14) looking for…
- able 1 contains price and quantity information for two products produced by Apple,the iPhone and Apple Watch for 2016 and 2017. Let’s assume that they were producedin the United States.Table 1: Apple Products 2016 2017 Price Quantity Price QuantityiPhone $1,200 300 $1,250 400Apple Watch $500 800 $650 850 Calculate the amount contributed by Apple to nominal U.S. GDP from the salesof the two products in 2016 and 2017. Calculate the amount contributed by Apple to real U.S. GDP from the sales ofthe two products in 2016 and 2017. Determine the growth rate of nominal GDP (if Apple were the entire economy). Determine the growth rate of real GDP (if Apple were the entire economy). Use the shortcut you learned to convert between real and nominal growth ratesto determine the growth rate of prices. Is the increase in nominal GDP due to a change in…Suppose the Following information was published by Australia Bureau of Statistics in 2017: Item Amount (AUD billion) Household consumption (C) 1029.81 Government consumption 340.92 Exports 386.39 Value of cocaine seized at Sydney Airport 10,500 Value of intermediate goods in tractor Manufacturing 52,003 Gross private domestic investment (I) 352.69 Imports 386.95 Components used in the manufactrure of cars 40,000 Gifts 15,236 Government investment 88.19 Value of second-hand goods 500.00 Use the information to answer the following questions Identify the items that are not included in the GDP calculation. Calculate Australia’s GDP in 2017.A US company produces $20000 worth of shirts in 2019. However, only $15000 worth of the shirts are sold to consumers in 20019 and the rest are still lying at the producer’s warehouse. Group of answer choices 1. The entire $20000 worth of shirts should be added to Consumption when calculating 2019 GDP 2. The $5000 worth of unsold shirts should be added to Exports when calculating 2019 GDP 3. The entire $20000 worth of shirts should be added to Investment when calculating 2019 GDP 4. The $5000 worth of unsold shirts should be added to Investment when calculating 2019 GDP
- Table 1 contains price and quantity information for two products produced by Apple,the iPhone and Apple Watch for 2016 and 2017. Let’s assume that they were producedin the United States.Table 1: Apple Products 2016 2017 Price Quantity Price QuantityiPhone $1,200 300 $1,250 400Apple Watch $500 800 $650 850 Calculate the amount contributed by Apple to nominal U.S. GDP from the salesof the two products in 2016 and 2017. Calculate the amount contributed by Apple to real U.S. GDP from the sales ofthe two products in 2016 and 2017. Determine the growth rate of nominal GDP (if Apple were the entire economy). Determine the growth rate of real GDP (if Apple were the entire economy). Use the shortcut you learned to convert between real and nominal growth ratesto determine the growth rate of prices. Is the increase in nominal GDP due to a change in…2. The following table shows an example of gross domestic product values for five countriesfrom 2005 to 2010 in equivalent U.S. dollars ($). a. How could you improve the readability of this table?b. The file GdPyears contains sample data from the United Nations Statistics Divisionon 30 countries and their GDP values from 2005 to 2010 in U.S. dollars ($). Create atable that provides all these data for a user. Format the table to make it as easy to readas possible.Fred the farmer purchased five new tractors at $20,000 each. Fred sold his old tractors to other farmers for $50,000. The net increase in GDP of these transactions was a) 20,000 b) 50,000 c) 100,000 d) 150 000
