Economics (6th Edition)
6th Edition
ISBN: 9780134105956
Author: Hubbard
Publisher: PEARSON
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Question
Chapter 21, Problem 21.1.8PA
Sub part (a):
To determine
Calculating Real GDP (Gross Domestic Product ).
Sub part (b):
To determine
Calculating average annual growth.
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The table below contains data for a country, which produces only X and Y.
The base year is 2010.
Year Price of X Q of X Price of Y Q of Y N GDP R GDP Def
2010 $3.00 90 $1.00 150
2011 $4.00 100 $2.00 180
2012 $5.00 120 $3.00 200
1. Refer to Table. In 2011,
a. nominal GDP was $420, real GDP was $420
b. nominal GDP was $240, real GDP was $480.
c. nominal GDP was $760, real GDP was $420.
d. nominal GDP was $760, real GDP was $480.
2. Refer to Table. In 2012,
a. GDP deflator was 100.00
b. GDP deflator was 158.33.
c. GDP deflator was 214.28.
d. GDP deflator was 285.71.
3. Refer to Table. Output growth from 2011 to 2012
a. 80.95%. c. 57.89%.
b. 14.28%. d. 16.66%.
4. Refer to Table. Inflation rate from 2011 to 2012
a. 14.28% c. 35.33%.
b. 16.66%. d. 58.33%.
5. The labor-force participation rate
a.…
As you learned in the most recent chapter, GDP is the broadest measure of economic health in the U.S. Therefore, the discussion forum for the week will ask you to discuss GDP in your own words. Specifically,
Business leaders, Government officials, and investors are often fixated on GDP results and economic growth. Why? What does it matter?
The same level of interest is given to productivity. What is it and why does it matter in the scheme of things?
What does GDP fail to tell us?
Consider an economy that produces only chocolate bars. In year 1, the quantity produced: is 6 bars and the price is $6. In year 2, the quality produced is 8 bars and the price is $10. In year 3, the quantity produced is 10 bars and the price is $12. Year 1 is the base year. (A) what is the nominal GDP for each of these three years? (B.) what is real GDP for each of these years? (C.) what is the percentage growth rate of real GDP from year 2 to year 3?
Chapter 21 Solutions
Economics (6th Edition)
Ch. 21 - Prob. 21.1.1RQCh. 21 - Prob. 21.1.2RQCh. 21 - Prob. 21.1.3RQCh. 21 - Prob. 21.1.4RQCh. 21 - Prob. 21.1.5PACh. 21 - Prob. 21.1.6PACh. 21 - Prob. 21.1.7PACh. 21 - Prob. 21.1.8PACh. 21 - Prob. 21.1.9PACh. 21 - Prob. 21.1.10PA
Ch. 21 - Prob. 21.1.11PACh. 21 - Prob. 21.1.12PACh. 21 - Prob. 21.1.13PACh. 21 - Prob. 21.1.14PACh. 21 - Prob. 21.2.1RQCh. 21 - Prob. 21.2.2RQCh. 21 - Prob. 21.2.3RQCh. 21 - Prob. 21.2.4RQCh. 21 - Prob. 21.2.5PACh. 21 - Prob. 21.2.6PACh. 21 - Prob. 21.2.7PACh. 21 - Prob. 21.2.8PACh. 21 - Prob. 21.2.9PACh. 21 - Prob. 21.2.10PACh. 21 - Prob. 21.2.11PACh. 21 - Prob. 21.2.12PACh. 21 - Prob. 21.2.13PACh. 21 - Prob. 21.2.14PACh. 21 - Prob. 21.2.15PACh. 21 - Prob. 21.2.16PACh. 21 - Prob. 21.2.17PACh. 21 - Prob. 21.3.1RQCh. 21 - Prob. 21.3.2RQCh. 21 - Prob. 21.3.3RQCh. 21 - Prob. 21.3.4PACh. 21 - Prob. 21.3.5PACh. 21 - Prob. 21.3.6PACh. 21 - Prob. 21.3.7PACh. 21 - Prob. 21.3.8PACh. 21 - Prob. 21.3.9PACh. 21 - Prob. 21.3.10PACh. 21 - Prob. 21.1RDECh. 21 - Prob. 21.2RDECh. 21 - Prob. 21.3RDE
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- The following abstract appeared in gultnews.com on January 14th, 2019. "The UAE is forecast to achieve an annual average real GDP growth rate of 3.89% between 2019 and 2023, supported by an increase in investment Nows and private consumption A Would the nominal rate be less, the same or more than 3.8% Explain your answer discussing the difference between nominal GDP and8 GDP is used up by FOUR ultimate users Who are they? C Discuss whether the method that you use to calculate GDP influence the final resultarrow_forwardQ2: b) Consider the following data on the Pakistan economy: (Solve in White black paper) Nominal GDP GDP Deflator Year (in billions of rupees) (base year 2012) 2018 21,501 111.4 1998 9,163 76.3 iv. What was real GDP in 2018 measured in 2012 prices? v. What was the growth rate of real GDP between 1998 and 2018? vi. Was the growth rate of nominal GDP higher or lower than the growth rate of real GDP? Explain.arrow_forward1. According to the BEA, in the second quarter of 2012 personal consumption expenditures grew by 1.7 percent, gross private domestic investment grew by 3.0 percent, government expenditure on goods and services decreased by -0.9 percent, imports grew by 2.9%, and exports grew by 6.0%. Given these data, it is most likely that A) GDP growth was positive in the 2nd quarter. B) GDP growth was negative in the 2nd quarter. C) the economy hit a business cycle peak. D) the economy hit a business cycle trough. 2. In the national income accounts, government expenditure on goods and services exclude A) transfer payments. B) state and local government purchases. C) local government purchases but include state government purchases. D) spending on national defense. 3. Transfer payments A) are included in the government expenditure category in gross domestic product. B) refer to all payments made to households by governments. C) refer to payments made by the government that are not made to…arrow_forward
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