EBK MACROECONOMICS
10th Edition
ISBN: 9780134896571
Author: CROUSHORE
Publisher: VST
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Question
Chapter 2, Problem 2WWMD
To determine
The behavioral patterns of national savings and investments of the United States during the past decade versus the earlier times and the means by which investments exceed the level of national savings during certain periods.
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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.
Q1. A simple economy produces only two goods, bread, and automobiles, neither being
used as intermediate inputs, and it has no government, investment, or trade. In this
case since GDP is Y = C. Data for three periods are given in the following table:
Year 1990
Year 2000
Year 2010
Price of
Bread, $/tray
Automobiles, $
Quantity of
Bread, trays
Automobiles
12
60,000
10
45,000
50,000
550,000
70
500,000
110
400,000
150
b. Using 2000 as the base year, calculate the CPI for 2000, 2010 and the average
annual growth rate of the CPI between 2000 and 2010. Comment on any
implications your results have for the welfare of households in this economy (Hint:
welfare is improved if GDP growth exceeds that of price level).
Go to these links:
https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?end=2018&start=2000
https://data.worldbank.org/indicator/NY.GDP.DEFL.ZS?end=2018&start=2000
Choose the time range from 2010 to 2018. Pick one country and calculate real GDP for this country using the statistics for each year from the links. Discuss why real GDP is more appropriate for the economic analysis.
Chapter 2 Solutions
EBK 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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