Output and Prices for 1995 and 1996 of Product Quantity produced in 1995 Price in 1995 Quantity produced in 1996 Price in 1996 Good J 89 $9.75 96 $9.5 Good K 86 $8.5 79 $9 Given the information in the table above for an economy that produces only Good J and Good K, answer the questions that follow. Do not enter dollar signs or commas in your answers. 1. What was the value of nominal GDP in the year 1995? $ 2. What was the value of nominal GDP in the year 1996? $ 3. What was the value of real GDP in the year 1995 if 1996 is the base year? $ 4. What was the value of real GDP in the year 1996 if 1995 is the base year? $

Output and Prices for 1995 and 1996 of Product Quantity produced in 1995 Price in 1995 Quantity produced in 1996 Price in 1996 Good J 89 $9.75 96 $9.5 Good K 86 $8.5 79 $9 Given the information in the table above for an economy that produces only Good J and Good K, answer the questions that follow. Do not enter dollar signs or commas in your answers. 1. What was the value of nominal GDP in the year 1995? $ 2. What was the value of nominal GDP in the year 1996? $ 3. What was the value of real GDP in the year 1995 if 1996 is the base year? $ 4. What was the value of real GDP in the year 1996 if 1995 is the base year? $

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Measuring A Nation's Income

Section: Chapter Questions

Problem 5PA

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Consider a simple economy that produces two goods: pens and erasers. The following table shows the prices and quantities of the goods over a three-year period. Year Pens Erasers Price Quantity Price Quantity (Dollars per pen) (Number of pens) (Dollars per eraser) (Number of erasers) 2015 1 115 1 165 2016 2 135 4 225 2017 4 100 4 175 From 2016 to 2017, nominal GDP , and real GDP . The inflation rate in 2017 was . Why is real GDP a more accurate measure of an economy's production than nominal GDP? Real GDP does not include the value of intermediate goods and services, but nominal GDP does. Real GDP includes the value of exports, but nominal GDP does not. Real GDP is not influenced by price changes, but nominal GDP is.
Consider an economy that produces 4 goods. Unless otherwise stated, 2017 is the base year. Quantity Price Product 2017 2018 2017 2018 A 5 7 $30 $40 B 6 4 $20 $40 C 8 12 $15 $20 D 3 5 $100 $110 Calculate nominal and real GDP for 2017 and 2018. What is the GDP deflator in 2017 and 2018? What is the corresponding annual growth rate of the economy and the annual inflation rate? Calculate the CPI for 2017 and 2018 (Hint: calculate the cost of the basket), as well as the annual CPI inflation rate. Why is GDP deflator inflation rate lower?
. A small nation idolizes the TV show The Voice. Allthey produce and consume are karaoke machinesand CDs, in the following amounts:Karaoke Machines CDsQuantity Price Quantity Price2020 10 $40 30 $102021 12 60 50 12a. Using a method similar to the CPI, computethe percentage change in the overall price level.Use 2020 as the base year and fix the basket at1 karaoke machine and 3 CDs.b. Using a method similar to the GDP deflator,compute the percentage change in the overallprice level. Again, use 2020 as the base year.c. Is the inflation rate in 2021 the same using the twomethods? Explain why or why not.
) Draw the table below in your answer booklet ai1d fill in columns'4, 5 and 6 to answer parts (i, ii, iii below) . Table: macroeconomic data for J(enya f'rom 2009-2014 Year Nominal GDP GDP Deflator Real GDP Real growth of output Inflation rate 2009 72923.06 787 100.00 20 i.O 78587.49261 102.09 2011 89954.66291 113.11 2012 1001.61.0889 123.72 2013 108273.9543 129.97 20]4 119421.4024 139.75 1. Calcul a te the annual real GDP for the period 2009 to 2014 2. Calculate the annual real growth rate of output for the period 2009 to 2014 3. Calculate the inflation rate for the period 2009 to 2014
Use the following table to answer questions about the hypothetical BYU Treats economy, which produces three goods. For each of these questions, show your work. Basket Items Unit $ per unit (2020) $ per unit (2021) $ per unit (2022) Cougar Tail 1 donut $5 $4.50 $4.25 Mint Brownie ½ sheet $29.98 $34.99 $39.99 Graham Canyon ice cream 5 quarts $14.99 $16.49 $17.99 i. Calculate the CPI (Consumer Price Index) for each year, using 2020 as the base year ii. What is the inflation rate from 2020 to 2021? iii. What is the inflation rate from 2020 to 2022? iv. Did the price of a Cougar Tail increase or decrease in real terms from 2020 to 2022? By how much?
(Problems with the CPI)The importance of the bias in the U.S. consumer price index is reviewed in an article in the June 1997 issue of Finance and Development from the International Monetary Fund at http://www.imf.org/external/ pubs/ft/fandd/1997/06/pdf/armknech.pdf.Tao Wu of the Federal Reserve Bank of San Francisco discusses current issues with the calculation of the consumer price index at http://www.frbsf.org/publications/economics/letter/ 2003/el2003-24.html.What are the criticisms of the CPI as it is now calculated?
Q3) Refer to the information provided in Table below Find the nominal and real GDP in 2017, 2018 and 2019. Then explain the diffrences between RGDP and Nominal GDP. Year 2017 Base year price index=10 Output=4 million Year 2018 Current year price index=20 Output=6 million Year 2019 Current year price index= 25 Output= 8 million
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Show your work for the following questions.if nominal output rises from$240billion to $259 billion,and the GDP deflator rises from 100to105. a) what is the percentage increase in nominal output? b) what is the percentage increase in the price index? c) By how much does real output change? d) To what value would the deflator have had to rise for real income to remain constant? Please kindly answer all these questions
Consider an economy that produces 4 goods. Unless otherwise stated, 2017 is the base year. Quantity Price Product 2017 2018 2017 2018 A 5 7 $30 $40 B 6 4 $20 $40 C 8 12 $15 $20 D 3 5 $100 $110 1. Calculate nominal and real GDP for 2017 and 2018. What is the GDP deflator in 2017 and 2018? What is the corresponding annual growth rate of the economy and the annual inflation rate? ***This has been answered*** Real GDP is the value of goods and services produced in an economy in an year, taken at base year prices Nominal GDP is the value of goods and services produced in an economy in an year taken at current year prices GDP deflator is given by formula: (Nominal GDP/Real GDP)*100 annual growth rate of economy is given by formula: current GDP minus the pervious year GDP divided by the previous year GDP Inflation is calculated as the current GDP deflator - previous GDP deflator whole divided by the previous…
Problem Set 1: Real and Nominal GDP Below are some data from the land of milk and honey. Year Price of Milk (€) Quantity of Milk (in litres) Price of Honey (€) Quantity of Honey (in jars) 2017 2 100 4 50 2018 2 200 4 100 2019 3 200 6 100 Compute nominal GDP, real GDP and the GDP deflator for each year, using 2017 as the base Compute the percentage change in nominal GDP, real GDP and both GDP deflator and inflation 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 Did economic well-being rise more in 2018 or 2019?
Suppose an economy produces and consumes only two goods, pastas, and books. The following table shows quantities consumed and prices for three years: 2019 (base year), 2020, and 2021. Make sure to show me how you compute the numbers and if you need a decimal number, round to one decimal. Year Price of Pasta Quantity of Pasta Price of Book Quantity of Book 2019 $4 80 $3 150 2020 $5 100 $4 200 2021 $6 200 $5 400 Question. What is the CPI basket of goods in this economy?