Economics (6th Edition)
Economics (6th Edition)
6th Edition
ISBN: 9780134105956
Author: Hubbard
Publisher: PEARSON
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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?
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