In 2019, 200 KGs of oranges are produced at Rs.40/kg, 500 KGs of apples are produced at 120/kg, and 200 Glasses of orange juice are produced at Rs.150/glass. In 2020, 220 KGs of oranges are produced at Rs.50/kg, 450 KGs of apples are produced at 140/kg, and 230 glasses of orange juice are produced at Rs.135/glass. Assuming 2019 is the base year; calculate the nominal GDP in 2019

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A: In the computing of the cost of goods per basket we keep the quantity of the current year is…

Q: What is the gain or loss on purchasing power for 2021? (if LOSS, put a negative (-) sign before the…

A: Answer-   Consumer Price Index :- It is the a measure which help calculate the change in price level…

Q: The basket of goods and services included in the Consumer Price Index cost $450 in the base year. If…

A: Consumer price index measures changes in the price level of a weighted average market basket of…

Q: The cost of the basket of goods in 2005 is $550 and the cost of the basket of goods in       2011…

A: Price Index =Current year cost of basketbase year cost of basket×100

Q: In computing the consumer price index (CPI), a base year is chosen. Which of the following…

A: The Consumer Price Index measures the overall change in consumer prices over time based on a…

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A: Most governments subtract the depreciation of physical capital from GDP (to arrive at NDP), but they…

Q: erform these same calculations for 2018 and 2019, and enter the results in the following table. 2017…

A: Hi, thank you for the question. As per the guidelines, we can only answer 1 question up to 3…

Q: If intermediate consumption in Italy in 2016 was $600 million and the value of output was $780…

A: The data presented in the question is as follows:- Intermediate consumption for 2016 = $600 million…

Q: In computing the consumer price index (CPI), a base year is chosen. Which of the following…

A: The price index is described because the relative prices of products and services in a specific…

Q: In the base year, nominal GDP O A. may be higher or lower than real GDP. O B. is always greater than…

A: In the base year, nominal GDP is equal to the real GDP. Real GDP measures the total output level…

Q: Year Units of Output Price Per Unit 1 20 $ 4 2 25 4 3 30 6   Assume an economy that is producing…

A: CPI is measured using fixed basket of goods.

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A: Inflation is the increase in prices of goods and services over a given period of time. Purchasing…

Q: What are the Actual dollars and Constant dollars?

A: The actual dollar is the value of dollars which is calculated after adjusting the inflation or…

Q: Differentiate between Actual dollars and Constant dollars?

A: A continuous increase in the general price level is referred to as inflation. An increase in the…

Q: Calculate a price index for every year, with year 4 as the base year, so in the blanks, you will…

A: Price index in year N = Price in year N x (Price in year 4 / 100)

Q: Inflation in Macroland is 5% this year and it is expected to remain at this rate for a foreseeable…

A:

Q: What was the approximate value of the inflation rate in Q4 of 2021?

A: Price index shows the living cost and represents the average change in general price level  during…

Q: The CPI equals 1.00 in year one and 1.40 in year two. If the nominal wage is $3000 in year one and a…

A: The Consumer Price Index measures the change in the price level of a basket of goods and services.…

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A: The difference between the present worth of inflows and present worth of outflows is said to be net…

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A: Cash flows: Cash flow has the inflow and outflow of the cash transactions in a company during an…

Q: Answer the next four questions based on the following data using year 1 as the base year.  All…

A: Consumer Price Index(CPI) is a representative price for all the commonly used goods and services by…

Q: Suppose the price level reflects the number of dollars needed to buy a basket of goods containing…

A: Inflation: Inflation is an economic concept that is defined as a rise in the general price level of…

Q: If the price index in Year 1 is 115 and the price index in Year 2 is 120, the rate of inflation…

A: We will calculate it as follows  Price index in simple words we can say that Price index, measure of…

Q: Suppose Cho is a cinephile and buys only movie tickets. Cho deposits $3,000 in a bank account that…

A: Cho's deposits $3000 in a bank account that pays an annual nominal interest rate of 10%. The price…

Q: Assume a hypothetical economy that produces only one good – Peanut Butter. In year 1, the quantity…

A: Hi, thanks for the question. Since the information for question three is not given (question a, e…

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A: The Gross National Product (GNP) is the sum of expenditure incurred by various sectors of the…

Q: Suppose, in the base year, a typical market basket purchased by an urban family cost $250. In Year…

A: In economics and finance, an index is a statistical measure of change in a representative group of…

Q: What is the nominal GNP for year 2018? Refer to the corresponding letters A to J. Value added of…

A: Nominal GNP is calculate by computing GDP and adding net factor or primary income from abroad or…

Q: If the Consumer Price Index rises from 125 in a year to 130 in the following year, the rate of…

A: Consumer Price Index (CPI): It refers to a statistical estimate which measures the change in the…

Q: Each year, Johan typically does all his own landscaping and yard work. He spends $204 per year on…

A:

Q: If the nominal interest rate is 8% and the inflation rate is 5%. Using the relevant real interest…

A: Given that,  Nominal interest rate = 8% or 0.08  Inflation rate = 5% or 0.05 Present value (PV) =…

Q: What is the difference between Actual Dollars and Constant Dollars?

A: The nominal value of an economic variable is the face value calculated in terms of money whereas the…

Q: A simple economy produces only lumber, granola bars, and computers. Annual production of these goods…

A: GDP at constant prices refers to the final value of all the goods and services produced in an…

Q: Suppose the Consumer Price Index in 2016 is 127.1 with 2002 as the base year a) What is the…

A: The purchasing power measures the change in the value of the dollar to the consumer of goods and…

Q: The average inflation rate is calculated on the basis of the CPI for all the items in the market…

A: True. The average inflation rate is calculated on the basis of the CPI for all the items in the…

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A: The Price Index is nothing but the relative/average normalized prices of a particular basket of…

Q: Suppose that in Year 1 an economy produces 100 golf balls that sell for $3 each and 75 pizzas that…

A: Value of the money shows how much the money value has increased/decreased. So we divide the current…

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A: Given:- Two products produce i.e ketchup and tomatoes 70% tomatoes used to make ketchup using base…

Q: Suppose that before the end of the year a typical consumer purchased 125 apples, 60 bananas, and 85…

A: Here, quantity and price of three products are given for year 1 and year 2 with having year 1 as…

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A: Linear Trend equation refers to the equation that shows the relationship between two variables. The…

Q: Illustrate how we may convert actual dollars into constant dollars of the base year or vice versa?

A: Constant-dollar amount estimate all potential future cash flows in constant dollars to find equal…

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A: Total money spent on bread in 2017 Yb = Quantity bought bread Qb * Price at that time Pb 30 = Qb * 5…

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A:

Q: Estimate and briefly explain the growth in the US and EU Economies for the 3-5 year term in nominal…

A: Economic growth: It refers to the activities that help in the production of more goods and services…

Q: Assume the nominal rate of return is 8.63% and the real rate is 4.68%. Find the inflation rate of…

A: The real rate of return formula is the sum of one plus the nominal rate divided by the sum of one…

Q: Over the last 10 years, the average rate of inflation has been 1.51%. What is the purchasing power…

A: The average annual inflation rate over the past 10 years was 1.51%

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A: CPI is measured using fixed basket of goods.

Q: If the price prevailing during the base year is 1000 and the quantity of final goods and services is…

A: As per the given question, Price during the base year are = 1000 Quantity of the goods = 500 We need…