Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Chapter 2, Problem 2AP
To determine
To comment: on the accuracy of the statement regarding billboards.
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Consider an economy that produces and consumes apples and oranges. In year 1, the price and quantity of the two goods is given by:
pa = 100, po = 200, qa = 10, qo = 5.
In the second year, prices and quantities are given by:
pa = 120, po = 220, qa = 10, qo = 10.
Find the growth rates of real and nominal GDP using the prices of the first year as the base.
Consider an economy that produce only ice cream cones. In year 1, the quantity produce is 8 bars and the price is RM 2. In year 2, the quantity produced is 12 cones and the price is RM 3.50. In year 3, the quantity produced is 18 bars and the price is RM 4. Year 1 is the base year
Consider an economy with two firms. Firm A
produces cotton and firm B produces cotton
swabs. In a given year, firm A produces 100,000
pounds of cotton, sells 40,000 pounds of cotton
to firm B at $3 per pound, and exports 60,000
pounds of cotton at $3 per pound. Firm A pays
$100,000 in wages to consumers. Firm B
produces 50,000,000 cotton swabs, and sells
40,000,000 cotton swabs to domestic
consumers at $0.04 per swab, and stores
10,000,000 cotton swabs as inventory. Firm B
pays consumers $40,000 in wages. In addition to
the 40,000,000 cotton swabs consumers buy
from firm B, consumers import and consume
5,000,000 cotton swabs, and they pay $0.06 per
cotton swab.
a. Calculate GDP using
1. Production/value added approach
2. Expenditure approach
Chapter 2 Solutions
Macroeconomics
Ch. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - Prob. 3RQCh. 2 - Prob. 4RQCh. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 9RQCh. 2 - Prob. 10RQ
Ch. 2 - Prob. 1NPCh. 2 - Prob. 2NPCh. 2 - Prob. 3NPCh. 2 - Prob. 4NPCh. 2 - Prob. 5NPCh. 2 - Prob. 6NPCh. 2 - Prob. 7NPCh. 2 - Prob. 8NPCh. 2 - Prob. 9NPCh. 2 - Prob. 1APCh. 2 - Prob. 2APCh. 2 - Prob. 3APCh. 2 - Prob. 1WWMDCh. 2 - Prob. 2WWMDCh. 2 - Prob. 3WWMDCh. 2 - Prob. 4WWMDCh. 2 - Prob. 5WWMDCh. 2 - Prob. 6WWMD
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