Suppose a small economy produces only smart TVs. In year one, 100,000 TVs are produced and sold at a price of $1,200 each. In year two, 75,000 TVs are produced and sold at a price of $1,200 each. As a result, Multiple Choice   nominal GDP fell to $90 million.   real GDP increased.   nominal GDP increased.   real GDP stayed the same.

Q: The GDP deflator has gone down by 3% and nominal GDP has gone down by 2%. Therefore real GDP has…

A: GDP deflator provides information about the inflation rate of an economy in a specific year.

Q: A farmer produces milk, which he sells to a mill for 1000 tk. The mill turns the milk into cream,…

A: GDP(Gross Domestic Product) is the total money value of all the goods and services produced in a…

Q: Suppose an economy produces only cranberries and maple syrup. In 2010, 50 units of cranberries are…

A: Nominal GDP refers to the total value of final goods and service produced during a given period in…

Q: Which of the following are included in this year’s GDP? Explain your answer in each. The income of a…

A: GDP computes the monetary value of final goods and services—that is, those that are purchased by the…

Q: For the purpose of calculating GDP, investment is spending on real estate and financial assets such…

A: GDP is the sum total of market value of final goods and services produced in a country during a…

Q: Changes in nominal GDP are caused by price changes and changes in real GDP are caused by quantity…

A: Inflation is defined as the rise in the average price level of commodities and services in the…

Q: Which of the following is true about real and nominal GDP? Only nominal GDP is measured in dollars,…

A: GDP is a popular measure used world wide in the estimation of the economy's performance during a…

Q: Explain difference between GDP and GNP. Support your answer with simple examples from Oman economy.

A: GDP tells us the value(total) of the finished domestic g&s(goods & services) during a…

Q: Which of the following would be counted in U.S. GDP?                           (objective B3)…

A: GDP refers to the market value of all the goods and services produced in the country at a specific…

Q: Suppose an U.S. farmer sells a truckload of sugar cane to a sugar refinery for $200. The refinery…

A: GDP refers to the total value of finished goods and services that produced within the economic…

Q: Determine whether each description refers to nominal gross domestic product (GDP) or real GDP. A…

A: Solution -  Definition  GDP - GDP is a measure to calculate total output of a country in a year .…

Q: Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on…

A: 1. Included It is included since it is manufactured and consumed in the country itself and in the…

Q: Consider an economy that produces and consumes bread and automobiles. In the following table are…

A: a) Nominal GDP:- Nominal GDP2000=PA×QA+PB×QBWhere;PA= Price of automobile QA=Quantity of…

Q: If a good produce this quarter goes into inventory then it is included in this. GDP if it is sold in…

A: Gross Domestic Product (GDP): The GDP is defined as the value of all final goods and services…

Q: An economy produces two goods: hot dogs and burgers. In 2014, 15 hot dogs are produced at a price of…

A: Given Product Quantity (2014) Price (2014) Quantity(2015)  Price (2015) Hot Dogs 15 2 20 4…

Q: Which of the following are included in this year’s GDP? Explain your answer in each case.a. Interest…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Which statement best describes the difference between Nominal and Real GDP? Group of answer choices…

A: Nominal GDP measures the value of goods and services at current market prices. Real GDP measures the…

Q: f a good produced this quarter goes into inventory, then it is included in this period’s GDP. If it…

A: Gross Domestic Product(GDP) is the value(VOO) of final goods and services(G&S) produced by…

Q: Consider an economy that produces only four types of fruit: apples, oranges, pineapples, and…

A: Consider an economy that produces only four types of fruit: apples, oranges, pineapples, and…

Q: Suppose an economy produces only cheese and fish.  In 2010, 20 units of cheese are sold at $5 each…

A: Calculate Nominal GDP for 2010 - Nominal GDP = [Quantity of cheese in 2010 * Price of cheese in…

Q: farmer grows a bushel of wheat and sells it to a Miller for $20.00. The Miller turns the wheat into…

A: a. GDP refers to the money value of all final goods and services that are produced within the…

Q: Give an example of a good that can be both an intermediate good and a final good. An intermediate…

A: Final goods refer to those products that are used either for use or investment purposes. Conversely,…

Q: Holly has recently graduated from college and has bought a house that was built 50 years ago for…

A: GDP can be understood as the final value of goods and services produced in an economy during a year.…

Q: GDP is a good and useful measure of general economic activity for each of the following reasons…

A: Answer: Option C (The total value of GDP is lower if the distribution of income is lower and less…

Q: Define the following i. Gross Domestic Product ii. GDP Deflator iii. National Income iv. Autonomous…

A: A charge for products or services made with money or credit is referred to as an expense.

Q: Question 27 GDP is not a perfect measure of well-being; for example, O GDP incorporates a large…

A: The answer is - Option 2: GDP fails to account for the quality of the environment.

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: Assume an economy where there are 2 producers: A Wheat Producer and a Bread Producer. In a given…

A: Product ApproachThere are two producers in the economy. One produces wheat and other produce bread.…

Q: A country has just one resource - labor - that it can use to produce two goods, books and clothing.…

A: Answer-

Q: The statement that total sales by businesses were up 0.3 percent means that GDP​ ______ because​…

A: Gross Domestic Product (GDP):It is the primary indicator which shows the health of an economy. It…

Q: Paolo and Sharon Zambetti live in Swarthmore, PA. Their son, Van, is an artist living in New York…

A: The purchasing of Italian Wine will be included in the consumption expenditure of the family as they…

Q: Select all events that contribute to increase the current year’s GDP in Canada? A household…

A: Gross Domestic Product (GDP) measures the value of final goods and services produced within the…

Q: Gross Domestic Product was designed as a measure of economic activity, specifically a measure of…

A: Gross domestic product measures the increase in the production of goods and services. An increase in…

Q: The Wakandan GDP for the year 2040 was $87,000. Government expenditures were $29,000 and investment…

A: GDP =Y Y= C+I+G+NX

Q: Instructions: For parts a, c, d, and e, enter your responses as a percentage rounded to one decimal…

A:

Q: Gross Domestic Product was designed as a measure of economic activity, specifically a measure of…

A: GDP is used to measure a society’s standard of living, but it is not a thorough indicator since it…

Q: Paul, a US citizen, buys $500 worth of illegal drugs while on vacation in Amsterdam. Upon his…

A: The correct option is  15000

Q: Give an example of a good that can be both an intermediate good and a final good. An intermediate…

A: Goods that are used for consumption or investment purposes are referred to as final goods. On the…

Q: suppose a small economy produces only smart TVs. in year one, 10,000 TVs are produced and sold at a…

A: Year 1 TV produced = 10,000 Sales Price = 1000 Year 2 TV Produced = 10,000 Sales Price = 1500

Q: Consider an economy that produces and consumes bread and automobiles. In the following table are…

A: Formula used- Nominal GDP = Sum of the price of a good in the current year * Quantity of good in the…

Q: Can you give two examples of goods or services that are in GDP and two examples of goods or services…

A: Gross domestic product(GDP) measures the money value of all final goods and services produced in an…

Q: When the Japanese car maker Toyota expands one of its car factories in the United States, What is…

A: The economies around the world work, or operate with the motive of increasing their production, as…