Pearson eText Economics -- Instant Access (Pearson+)
13th Edition
ISBN: 9780136879459
Author: Michael Parkin
Publisher: PEARSON+
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Chapter 21, Problem 21APA
To determine
Determine why the growth rate of GDP in current prices does not provide the information about how quickly the economy is really growing.
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Using the table below answer the following questions:
Calculate the total value of goods and services at current prices in this economy eachyear?
Calculate the total value of goods and services at constant prices in this economy eachyear? (Note: GDP deflator for 2015 is 100)
What is the growth rate of Real GDP between 2016 and 2017?
What was the growth rate of Nominal GDP between 2016 and 2017?
Was the growth rate of real GDP higher or lower that the growth rate of nominalGDP? Explain.
Using 2015 as the base year, calculate the CPI for each year.
Calculate the inflation rate for 2015, 2016 and 2017.
Given the following on a closed economy.C = 40 + 0.8Yd C= consumptionI = 55 – 200r I= InvestmentG = 20 G = government spendingT = 20 T = TaxesYe = 400 Ye = National Incomer = rate of interest
Determine the following: 3 marks eachThe equilibrium level of consumptionThe level of investmentThe level of interest rateThe level of Private savingsThe level of Public savingsThe level of…
China’s real GDP increased 6.9 percent in the first quarter of 2017 from a year earlier.Investment grew by 9.2 percent and retail sales by 10.9 percent. In current prices, GDPincreased by 11.8 percent from a year earlier.1. Explain how China’s real GDP can grow at a 6.9 percent rate when consumption andinvestment grew faster than 6.9 percent. 2. Explain why the growth rate of GDP in current prices does not provide informationabout how quickly the economy is really growing.
The following table shows real GDP for both the United States and China, in billions of 2009 dollars:
Real GDP Measured in Billions of 2009
Dollars
2015
2014
$8, 169
China
$7,642
$16,349
United States
$15,962
a) Which country's economy was
larger in 2014?
United States
China
b) Which economy grew faster between 2014 and 2015?
China
United States
c) Which economy was larger economy in 2015?
United States
<9 China
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Chapter 21 Solutions
Pearson eText Economics -- Instant Access (Pearson+)
Ch. 21.1 - Prob. 1RQCh. 21.1 - Prob. 2RQCh. 21.1 - Prob. 3RQCh. 21.2 - Prob. 1RQCh. 21.2 - Prob. 2RQCh. 21.2 - Prob. 3RQCh. 21.2 - Prob. 4RQCh. 21.2 - Prob. 5RQCh. 21.3 - Prob. 1RQCh. 21.3 - Prob. 2RQ
Ch. 21.3 - Prob. 3RQCh. 21.3 - Prob. 4RQCh. 21.3 - Prob. 5RQCh. 21 - Prob. 1SPACh. 21 - Prob. 2SPACh. 21 - Prob. 3SPACh. 21 - Prob. 4SPACh. 21 - Prob. 5SPACh. 21 - Prob. 6SPACh. 21 - Prob. 7SPACh. 21 - Prob. 8SPACh. 21 - Prob. 9APACh. 21 - Prob. 10APACh. 21 - Prob. 11APACh. 21 - Prob. 12APACh. 21 - Prob. 13APACh. 21 - Prob. 14APACh. 21 - Prob. 15APACh. 21 - Prob. 16APACh. 21 - Prob. 17APACh. 21 - Prob. 18APACh. 21 - Prob. 19APACh. 21 - Prob. 20APACh. 21 - Prob. 21APACh. 21 - Prob. 22APACh. 21 - Prob. 23APACh. 21 - Prob. 24APACh. 21 - Prob. 25APACh. 21 - Prob. 26APACh. 21 - Prob. 27APACh. 21 - Prob. 28APA
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