i. What is the difference between nominal GDP and real GDP? Which one of them is used to calculate the economic growth rate? Justify your answer.

Q: Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 10 bars…

A: In economics, the final demand domestically can be defined as the total demand for final services…

Q: The following table gives nominal GDP and the price index for two years. Find real GDP in each year,…

A: Growth rate = (value in 2011 / value in 2010) - 1

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: Suppose the fictional country of Lowl is facing an increase in the proportion of younger workers in…

A: The fictional country of Lowl is facing an increase in the proportion of younger workers in the…

Q: GDP at current prices and constant prices in Economy X Year      GDP at current prices    GDP at…

A: GDP is the value of all final goods and services produced in an economy over a given period of time.…

Q: From 2009 to 2019, the economy of country X grew at an annual rate of 5% and the labor force grew at…

A: Economic performance is measured in terms of the change in some vital macroeconomic variables such…

Q: Suppose you are given the following information about an economy. In this economy, the GDP deflator…

A: Nominal GDP growth rate = 44 % GDP deflator growth = 20 %

Q: Statistics In our discussion of the collection of macroeconomic statistics, we focused on the way…

A: Considering the way in which the overall price level in the economy is measured, the way in which…

Q: Consider an economy that produces only chocolate bars. In year 1, the quantity produced: is 6 bars…

A: There is an economy that produces only chocolate bars. Year Quantity (in bars) Price (in $) 1 6…

Q: Briefly differentiate between nominal and real GDP. Why is real GDP a more accurate measure of…

A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…

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: Explain how an increase in the interest rate can influence the level of GDP. (in 7 lines maximum). A…

A: Higher interest rate decreases AD because  Business investment will decline because it is less…

Q: Answer the attached question

A: Where a development closes and a downturn starts is known as the pinnacle of the business cycle.…

Q: Elucidate how an economy’s income must always equal its expenditure.

A: Elucidate how an economy’s income must always equal its expenditure. There are two national income…

Q: What is the Consumer Price Index? What can comparing the consumer price index of the two countries…

A: CPI (consumer’s price index) is a measure of changes in the monetary value of a bundle of…

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: During a federal election campaign, the incumbent argues that he should be re-elected because GDP…

A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…

Q: How will you differentiate nominal GDP from real GDP?  Which one (nominal or real) do you consider…

A: Every country focuses on its economic growth. Each country runs on its production, investment, and…

Q: How Real GDP is measured? Explain Real GDP of the United States at present time.

A: Real GDP is the final value of goods produced in an economy in a given fiscal year. It only…

Q: business cycle?

A: ‘Business cycle’ refers to a fluctuation in production, employment, trade and general activity in an…

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: Suppose, in a year, an economy reports a nominal GDP of $100 billion dollar, a Real GDP of $200…

A: Answer: Introduction: Nominal GDP: nominal GDP refers to the value of goods and services (produced…

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: Scrooge McDuck charges Donald Duck a nominal interest rate of 20% on any one-year loan Donald Duck…

A: The gross domestic product refers to the market value of all the final commodities(goods and…

Q: Suppose the following information on Nominal GDP and Average Prices. Use 2011 as your base year.…

A: Meaning of Gross Domestic Product (GDP): The term gross domestic product refers to the situation…

Q: Calculate real GDP in 2006, 2008, & 2010 in 2005 dollars. b. What was the percent change in real…

A: GDP is a measure of total aggregate output produced in the economy that can be computed either in…

Q: Which of the following is a way to compute real GDP?     a. add up the market values of all final…

A: The value of all goods and services generated by an economy in a given year (expressed in base-year…

Q: The following abstract appeared in gultnews.com on January 14th, 2019. "The UAE is forecast to…

A: National income refers to the final value associated with each good or service produced in the…

Q: Briefly explain whether you agree or disagree with the following statements. ( a) 'If nominal GDP is…

A: The sum total of final.values of good and services is referred to be as GDP.

Q: AS-AD diagram

A: Potential GDP: It refers to the production of goods and services or level of output of goods and…

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: (Technological Change and Unemployment) What are some examples, other than those given in the…

A: Technological changes leads to introduction of new technological advancement in the production. It…

Q: Using the following information. Show all working and calculate (i) the growth in nominal GDP and…

A: Economy well-being is characterized as having present and future monetary security. Present monetary…

Q: GDP Deflator

A: GDP Deflator: GDP Deflator measures the prices of all final goods and services which produced…

Q: was about 106, and real GDP in 2016 was $17.7 trillion (2012 dolla e GDP price index in the United…

A: Nominal GDP measures market value of goods and services using current prices whereas real GDP uses…

Q: Consider an economy that produces three goods: Goods 2018 2018 2019 2019 2020 2020 Produced Price…

A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…

Q: Why would an economist use real GDP rather than nominal GDP to measure growth? Nominal GDP allows…

A: Economic growth refers to an increase in the overall production of final goods and services in an…

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: 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: Suppose a country reported a nominal GDP of 85 billion in 2019 and 100 billion in 2018 and reported…

A:

Q: . Briefly explain the relationship between equilibrium real GDP and the unemployment rate.

A: Introduction Okun's Law can be used to examine the relationship between GDP and unemployment rates.…

Q: 1. According to the BEA, in the second quarter of 2012 personal consumption expenditures grew by 1.7…

A: 1. According to the BEA, in the second quarter of 2012 personal consumption.... Given these data, it…

Q: The Table shows the GDP deflator for the year 2019 and nominal GDP of Fairyland for the years 2019…

A: Nominal GDP is the GDP calculated at current price whereas Real GDP is calculated on the basis of…

Q: Suppose that nominal GDP was $9500000.00 in 2005 in Fairfax County Virginia. In 2015, nominal GDP…

A: since you have asked a multipart question and according to our policy we can solve the first 3 parts…

Q: 4.1- Data Table In the table below, we will see the change in the economic data of the USA from 2017…

A: The Real GDP/Capita, Growth rate of Real GDP/Capita, Inflation rates, interest rates, bank rate, etc…