The price and quantity data for Year 1 and Year 2 are as follows:Bread501Butter100Year 1 QuantityYear 1 PriceYear 2 QuantityYear 2 Price801201.601.25What is the ratio of real GDP in year 2 to real GDP in year 1, using year 1 as the base year?Answer Choices:1.254b. 1.3541.434d. 1.534a.C.Acivate Windcys

Real GDP = when the good of a year evaluated at base year prices.

The price and quantity data for Year 1 and Year 2 are as follows: Bread Butter Year 1 Quantity 50 100 Year 1 Price 1 1 Year 2 Quantity 80 120 Year 2 Price 1.25 1.60 What is the ratio of real GDP in year 2 to real GDP in year 1, using year 1 as the base year? Answer Choices: a. 1.254 b. 1.354 с. 1.434 d. 1.534 Activate Windows Go to PCettes to acvate Window

The price and quantity data for Year 1 and Year 2 are as follows: Bread Butter Year 1 Quantity 50 100 Year 1 Price 1 1 Year 2 Quantity 80 120 Year 2 Price 1.25 1.60 What is the ratio of real GDP in year 2 to real GDP in year 1, using year 1 as the base year? Answer Choices: a. 1.254 b. 1.354 с. 1.434 d. 1.534 Activate Windows Go to PCettes to acvate Window

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter7: Taking The Nation's Economic Pulse

Section: Chapter Questions

Problem 1CQ

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Year Units of Output Price Per Unit 1 8 $2 2 10 3 3 15 4 4 18 5 5 20 6 The accompanying table gives price and output data over a five-year period for an economy that produces only one good. If year 2 is the base year, then the percentage increase in real GDP from year 2 to year 4 is Group of answer choices 80 percent. 100 percent. 60 percent. 40 percent.
How shares of GDP accounted for by each component of GDP (C, I, G, X, and M) have changed across these three dates. Any trends? Any large changes? Be specific. 1968Q4 2000Q1 2023Q1 Consumption 59% 66% 68% Investment 17% 20% 17% Government Purchases 24% 18% 18% Exports 5% 11% 11% Imports -5% -14% -15%
Transcribed Image Text:The price and quantity data for Year 1 and Year 2 are as follows: Bread 50 1 Butter 100 Year 1 Quantity Year 1 Price Year 2 Quantity Year 2 Price 80 120 1.60 1.25 What is the ratio of real GDP in year 2 to real GDP in year 1, using year 1 as the base year? Answer Choices: 1.254 b. 1.354 1.434 d. 1.534 a. C. Acivate Windcys
Consider an economy that produces only three types of fruit: Apples, oranges and bananas. In thebase year (a few years ago), the production and price data were as follows:Fruit Quantity PriceApples 3000 bags $2 per bagBananas 6000 bunches $3 per bunchOranges 8000 bags $4 per bagIn the current year, the production and price data are as follows:Fruit Quantity PriceApples 4000 bags $3 per bagBananas 14 000 bunches $2 per bunchOranges 32 000 bags $5 per bagFind nominal GDP in the current year and in the base year. What is the percentage increase sincethe base year?
Q.1.3 In the base year, a country produced 50 units of output at a price of R6,00 eachfor a nominal GDP of R300. This year it produces 60 units of output at a price ofR8,00 each. What is the percentage change in real GDP since the base year?(2)(a) 5%;(b) 10%;(c) 20%;(d) 15%.
Consumption $500Government Expenditures $200GNP $800Gross Private Domestic Investment $100Imports $100Exports $50 Questions: 3. Using the data above, PCE (Personal Consumption Expenditure) is equal to _____________.4. If the dollar amounts of the items above are the nominal amounts in year 2017, and the quantities of units are identical in years 2010 and 2017, but prices in 2010 were 20% less than 2017, Real GDP in 2017 using 2010 as the base year is equal to _______________.
An American retailer purchased 100 pairs of shoes from a company in Mexico in the second quarter of 2016 but does not sell them to a consumer until the third quarter of 2016. In which quarter(s) does(do) the value of the shoes add to U.S. GDP? O the third but not the second quarter O the second quarter but not the third quarter O the second and third quarters O neither the second nor the third quarter Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Consider a macroeconomy where the current population is 800 thousand people. Gross domestic private investment is constant $2500 million while consumer expenditure is described by the equation: C = 580+ 0.8DI. The government is fairly active, with a total expenditure of $2000 million and net taxes of $2550 million. Further investigation of the macroeconomy reveals that imports are constant at $3000 million while exports are constant at $2500 million. Currently, the overall price level (GDP deflator) is 118 and the potential GDP level is $13.5 billion. What is the current equilibrium level of real GDP? (report your answer at 2 decimal places and in millions of dollars) 1. What is the current equilibrium level of real GDP 2. what is the current real GDP per capita? 3. what is the value gap?
Assume that this economy produces only two goods Good X and Good Y. If year 2 is the base year, the value for this economy's real GDP in year3 is: A- = 2000 B- = 2500 C- = 3600 D- = 3750 Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's GDP deflator in year 2 is: A- = 100 B- =121 C- = 130 D- =150 Assume that this economy produces only two goods Good X and Good Y.
Please provide me ans for part f only. Q) Assume a hypothetical economy that produces only one good – Peanut Butter. In year 1, the quantity produced is 4 packs and the price is Rs.400 per pack. In year 2, the quantity produced is 5 packs and the price is Rs.500 per pack. In year 3, the quantity produced is 6 packs and the price is Rs.600 per pack. Year 1 is the base year.a. What is nominal GDP for each of these three years? b. What is real GDP for each of these years? c. What is the GDP deflator for each of these years? d. What is the percentage growth rate of real GDP from year 2 to year 3? e. What is the inflation rate as measured by the GDP deflator from year 2 to year 3? f. In this one-good economy, how might you have answered parts (d) and (e) without first answering parts (b) and (c)?
Consider a macroeconomy where the current population is 800 thousand people. Gross domestic private investment is constant $2500 million while consumer expenditure is described by the equation: C = 580 +0.8DI. The government is fairly active, with a total expenditure of $2000 million andnet taxes of $2550 million. Further investigation of the macroeconomy reveals that imports are constant at $3000 million while exports are constant at $2500 million. Currently, the overall price level (GDP deflator) is 118 and the potental GDP level is $13.5 billion.(Question4 of 7)Now, consider that the government decreases taxes by 7.5%. While the change had a direct impact on the economy, other market conditions led to an unanticipated change in the economy. Specifically, imports decrease by 7.5%. At the same time, given the birth rate, mortality rate, and net migration, the economy experienced a 0% change in its population.1. As a result of these events, what is the current equilibrium level of GDP?…
For the following question , please indicate whether current GDP of the United States will be affected and, if so, by how much .In each case, indicate also which component(s) of GDP will be affected and by how much This month, a manufacturer in colorado sells $60,000 worth of t-shirts to a distributor in New York City, who sells them to the public. Then the New York distributor buys corporate bonds for a value of $10,,000, which promise to return $9400 one year from now.