Suppose that this year’s nominal GDP is $16 trillion. To account for the effects of inflation, we construct a price-level index in which an index value of 100 represents the price level 5 years ago. Using that index, we find that this year’s real GDP is $15 trillion. Given those numbers, we can conclude that the current value of the index is:   a.  Higher than 100. b.  Lower than 100. c.  Still 100.

Q: For the following question , please indicate whether current GDP of the United States will be…

A: Gross domestic product is the aggregation of the value of goods and services produced in the…

Q: In order to find 2016 GDP in chained 2017 dollars, you would need to compute all but one of the…

A: In order to calculate the 2016 GDP in chained 2017 dollars, the GDP for 2016 in current year prices,…

Q: The following table shows the outputs and prices of three products produced by an economy in 2018,…

A: When GDP is measured at current prices, it is referred to as nominal GDP. To calculate the Nominal…

Q: A researcher finds that, for an economy, the nominal GDP in the year 2015 equaled the nominal GDP in…

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

Q: Suppose that nominal GDP was $10 trillion in 2040 in Atlantis. In 2050, nominal GDP was $15 trillion…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: uppose that for the United States, Nominal GDP is  $18 trillion for 2016. Assume further that the…

A: Real gross domestic product (GDP) is an inflation-compensated measure that mirrors the estimation,…

Q: Using the above table, assume that this economy only produces two goods: X and Y. If Year 1 is the…

A: Real GDP Formula: Real GDP = Price of goods in base year * Quantity of current year

Q: If I have an economy that produces only one good and in year i the quantity is Qi and the price is…

A: Nominal GDP could be measure multiplying by quantity of current year with current price. Real GDP…

Q: Suppose nominal GDP increased in a given year. Based on this information, we know with certainty…

A: Nominal GDP means GDP produced for the current goods and services produced without the adjustment of…

Q: Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 5 bars…

A: Note: Since, you've posted question with multiple sub-parts, we will solve the first the first three…

Q: Q3) Refer to the information provided in Table below Find the nominal and real GDP in 2017, 2018 and…

A: Nominal GDP - Nominal GDP calculates GDP at current prices (not adjusted for inflation). Real GDP -…

Q: What is the annual growth rate of real GDP?   b. Do you think the welfare of all people in the U.S.…

A: The value of all final goods and services generated by labor and property in a well-defined…

Q: such as the consumer prices ind

A: If inflation is high, the CPl is the better measure of the overall price level; if inflation is low…

Q: Suppose that in 1984 the total output in a single-good economy was 10,000 buckets of chicken. Also…

A: It is given that In 1984, the total output was 10,000 bucket of chicken and $16/bucket of chicken In…

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: An economy has nominal GDP of $16,768 billion in year 1 and $17,419 billion in year 2. If real GDP…

A: Gross domestic product (GDP) is the summation of the value of commodities manufactured in the…

Q: Suppose that in 1994 the total output in a single-good economy was 7,000 buckets of chicken. Also…

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

Q: Suppose that the residents of Windhoek spend all of their income on cauliflower, broccoli and…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…

Q: If nominal GDP is $10 trillion and real GDP is $8 trillion, the GDP deflator is: a. 80, and this…

A: The GDP price deflator estimates the progressions in prices for every one of the goods and services…

Q: Production Prices Year1Year 2Year 3 Year 1Year 2Year Good X 50 50 60 $1.00 $1.20 $1.20 Good Y 100…

A: GDP Deflator=Nominal GDPReal GDP×100

Q: If your nominal income rose by 5.3 percent and the price level rose by 3.8 percent in some year, by…

A: Real income is income adjusted for inflation where nominal income does not account for price…

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: Three goods are produced and consumed in an economy during years 1 and 2. The table shows prices (P1…

A: Real GDP is an inflation-adjusted measure that measures the value of goods and services produced in…

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…

Q: In 2012, the nominal GDP is $1.6 trillion but the real GDP is $1.8 trillion. What is the implication…

A: Gross domestic product (GDP) refers to the value of final goods and services produced within the…

Q: If nominal GDP increases by 5 percent a year and the GDP price index rises by 2 percent a​ year,…

A: The economies around the world tend to work with the motive of enhancing their economic development,…

Q: Q.1.5 and Q.1.6 are based on the following information about an economy that produces the following…

A: Answer: Given: Price and quantity in 2018 (Base year): Price and quantity in 2019: Nominal GDP: it…

Q: Suppose that an economy produces two goods: laptops and books. The quantity produced and the prices…

A: In 2019 No. of laptops produce is 60 No. of books produce is 1200 The price of a laptop is $ 220 The…

Q: If your nominal income rose by 5.3 percent and the price level rose by 3.8 percent in some year, by…

A: Income of the individuals refers to the total earnings received from the wages, investment in…

Q: Nominal GDP in Nowhereland in 2002 and 2003 increased from $4 trillion to $4.8 trillion. Can you say…

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

Q: Suppose that in 1994 the total output in a single-good economy was 10,000 buckets of chicken. Also…

A: Price in 2015 = $16 Price in 1994 = $10

Q: Suppose that in 1994 the total output in a single-good economy was 7,000 buckets of chicken. Also…

A:

Q: Three goods are produced and consumed in an economy during years 1 and 2. The table shows prices (P1…

A: Real GDP is basically an inflation-adjusted estimate of the value of goods and services generated 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: Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP…

A: Nominal GDP defines the production in an economy which includes the current prices of goods and…

Q: Assume that in Berberistan only three goods are produced: coffee, tea, and cheesecake. The table…

A: GDP or gross domestic product is the measurement of the final value of all the goods and services…

Q: Suppose that in 1994 the total output in a single-good economy was 10,000 buckets of chicken. Also…

A: Given, Price in the year 1994 $10/bucket of chicken Output in the year 1994 10,000 buckets of…

Q: suppose an increase in productivity increases nominal GDP by 6% and inflations is 3% what is the…

A: here we calculate the real GDP growth by using the given data and real gdp show the inflation…

Q: Assume that this economy produces only two goods Good X and Good Y. The value for this economy's…

A: a) Economy's nominal GDP in year 3 is: NGDPYEAR 3=Priceyear 3×Quantityyear 3So for good X &…

Q: If nominal GDP for 2017 is $62 trillion and real GDP for 2017 is $46 trillion, then the GDP deflator…

A: The GDP deflator measures the changes in prices for all of the goods and services produced in an…

Q: Suppose that nominal GDP is $10,622 billion and real GDP is $12,070 billion.   What is the value of…

A: Answer: Given: Nominal GDP=$10,622 billion Real GDP= $12,070 billion To find: GDP price index…

Q: Suppose that in 1984 the total output in a single-good economy was 10,000 buckets of chicken. Also…

A:

Q: Consider an economy that produce only ice cream cones. In year 1, the quantity produce is 8 bars and…

A: Nominal GDP is based on current price level, where as Real GDP is based on constant price level i.e…