Question 1 Problem 1. The following table shows Nominal GDP for two consecutive years together with the GDP Deflator Index Calculate the following: a) Real GDP for each year. b) The inflation rate over the 1-year period from the first year to the second. c) The growth rate of Nominal GDP. d) The growth rate of Real GDP. Does the data seem to indicate a recession or a growing economy? Explain briefly e) Find the difference between the answer to c) and the answer to b). Year 2029 2030 Nominal GDP ($ billion). 5000 5350 GDP Deflator 240 252 Real GDP

Question 1 Problem 1. The following table shows Nominal GDP for two consecutive years together with the GDP Deflator Index Calculate the following: a) Real GDP for each year. b) The inflation rate over the 1-year period from the first year to the second. c) The growth rate of Nominal GDP. d) The growth rate of Real GDP. Does the data seem to indicate a recession or a growing economy? Explain briefly e) Find the difference between the answer to c) and the answer to b). Year 2029 2030 Nominal GDP ($ billion). 5000 5350 GDP Deflator 240 252 Real GDP

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter12: Business Cycles And Unemployment

Section: Chapter Questions

Problem 2SQP

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What is the relationship of the GDP deflator to real GDP? To make comparisons across time or across borders, one must use the notion of a GDP deflator to convert nominal GDP into real GDP for comparisons. Nominal variables are in current dollars and have price level changes such as inflation and deflation included in them. Real variables are in constant dollars due to the factoring out of price level changes using a base year and a deflator. What is the current nominal GDP for the US economy? What is the current real GDP for the US economy?
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Which of the following macroeconomic variables is the most seasonally procyclical? 1- Expenditure on services 2- The unemployment rate 3- Expenditure on durable goods 4- The real wage
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The following table shows the outputs and prices of three products produced by an economy in 2018, 2019 and 2020. (i) Measure the nominal GDP, the real GDP and the GDP deflator in 2019 and 2020, taking 2018 as the base year.(ii) Using the GDP deflator, measure the inflation rate in the economy between 2018 and 2019, and also between 2019 and 2020. (iii) Assume all household consumption items are locally produced as shown in the table in Question (a). A typical household in the economy consumes 5 units of rice, 4 units of shirt and 2 units of shoes in 2018. Using 2018 as the base year, measure the CPI for 2019 and 2020 and the inflation rate between 2018 and 2019, and also between 2019 and 2020. Explain why the inflation rate is different from those computed from (a)(ii).
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
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Given the below information, find the nominal GDP for all four quarters. Find the price index for all four quarters. Find real GDP for all four quarters. Find the percent rate of change in real GDP from the first to the second quarter then from the second to the third quarter then from the third to the fourth quarter. Using real GDP from the third to the fourth quarter, state how long it will take for real GDP to double in size. Show all work and take all steps. GDP = C + Ig + G + NX Price Q1 300 70 170 30 $4 Q2 370 130 230 30 $5 Q3 430 170 270 30 $6 Q4 570 230 370…
The following table contains nominal and real GDP data, in billions of dollars, from the U.S. Bureau of Economic Analysis for 2013 and 2014. The data is listed per quarter, and the real GDP data was calculated using 2009 as the base year. Fill in the columns for the GDP deflator and for the percent increase in price level. (Round your responses to two decimal places!) Quarter Nominal GDP Real GDP GDP Deflator Percent Increase in Price Level (%) 2013 Q1 16,502.40 15,538.40 106.20 ---- 2013 Q2 16,619.20 15,606.60 ? ? 2013 Q3 16,872.30 15,779.90 ? ? 2013 Q4 17,078.30 15,916.20 ? ? 2014 Q1 17,044.00 15,831.70 ? ? 2014 Q2 17,328.20 16,010.40 ? ? 2014 Q3 17,599.80 16,205.60 ? ? 2014 Q4 17,703.70 16,294.70 ? ? Please explain how to solve the empty columns thank you!
Show your work for the following questions.if nominal output rises from $240billion to$259 billion and the GDP deflator rises from 100to 105. a) to what value would the deflator have had to rise for real income to remain constant?