Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 21.A, Problem 7SPP
To determine
To compare:
The growth rates of nominal
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The table attached gives data on the production and prices in a small economy. Use 2012 as the base period.
What does nominal GDP equal in 2012?
What does nominal GDP equal in 2013?
What does real GDP equal in 2013?
Calculate the growth rate in real GDP from 2012-2013
1. Calculate the Real GDP for 2017. Show your calculation.2. Did Suniland experience economic growth in 2017? Show your calculations
2011 (base Year)
2011
2012
2012
2013
2013
P
Q
P
Q
P
Q
Good A
$30
900
$31
1000
$36
1050
Good B
$100
192
$102
200
$100
205
to calculate Nominal GDP in 2012 and 2013. What is the growth of such nominal GDP from 2011 to 2012, and from 2012 to 2013. Do the same for the real GDP. Which has grown more, nominal GDP or real GDP? What does this imply?
Chapter 21 Solutions
Foundations of Economics (8th Edition)
Ch. 21.A - Prob. 1SPPCh. 21.A - Prob. 2SPPCh. 21.A - Prob. 3SPPCh. 21.A - Prob. 4SPPCh. 21.A - Prob. 5SPPCh. 21.A - Prob. 6SPPCh. 21.A - Prob. 7SPPCh. 21.A - Prob. 1IAPCh. 21.A - Prob. 2IAPCh. 21.A - Prob. 3IAP
Ch. 21.A - Prob. 4IAPCh. 21.A - Prob. 5IAPCh. 21.A - Prob. 6IAPCh. 21.A - Prob. 7IAPCh. 21 - Prob. 1SPPACh. 21 - Prob. 2SPPACh. 21 - Prob. 3SPPACh. 21 - Prob. 4SPPACh. 21 - Prob. 5SPPACh. 21 - Prob. 6SPPACh. 21 - Prob. 7SPPACh. 21 - Prob. 8SPPACh. 21 - Prob. 9SPPACh. 21 - Prob. 10SPPACh. 21 - Prob. 1IAPACh. 21 - Prob. 2IAPACh. 21 - Prob. 3IAPACh. 21 - Prob. 4IAPACh. 21 - Prob. 5IAPACh. 21 - Prob. 6IAPACh. 21 - Prob. 7IAPACh. 21 - Prob. 8IAPACh. 21 - Prob. 9IAPACh. 21 - Prob. 10IAPACh. 21 - Prob. 11IAPACh. 21 - Prob. 12IAPACh. 21 - Prob. 1MCQCh. 21 - Prob. 2MCQCh. 21 - Prob. 3MCQCh. 21 - Prob. 4MCQCh. 21 - Prob. 5MCQCh. 21 - Prob. 6MCQCh. 21 - Prob. 7MCQ
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- Compare the nominal GDP growth rates and the real GDP growth rates for 2015, 2016, and 2017. What do you conclude? Which of the two accurately measures the GDP and why?arrow_forward1. Nominal GDP is the value of final goods and services A) at the prices of that year. B) at the prices of the immediately previous year. C) at the prices of a base year. D) produced in foreign countries but consumed in the domestic country. 2. which of the following, which is correct? A) Nominal GDP does not change when the production of goods and services increases. B) Nominal GDP is not affected by changes in prices of goods and services. C) Nominal GDP increases when the prices of goods and services increase. D) Real GDP changes only when the prices of goods and services really change. Item Billions of dollars Compensation of employees 80 Net interest and rental income 30 Corporate profits 10 Proprietor's income 20 3. Use the information in the table above plus the fact that indirect taxes less subsidies are $10 billion and depreciation is $30 billion to calculate the value of GDP. A) $180 billion B) $150 billion C) $140 billion D) $130…arrow_forwardSuppose nominal GDP was $13,302.3 billion in 2007 and was $13,790.2 billion in 2009. If the GDP deflator for 2009 (with a base year of 2007) was 103.034, what is the growth rate of real output between 2007 and 2009? Show your calculations, otherwise you will lose a lot of points..arrow_forward
- Table 23-8A country produces only meat and potatoes in the quantities and prices listed below. Use 2011 as the base year. Year Price of Potatoes Quantity of Potatoes Price of Meat Quantity of Meat 2011 $2.00 10 $20 6 2012 $2.50 15 $22 7 2013 $3.50 20 $25 8 10. Refer to Table 23-8. In 2012, nominal GDP is a. $191.50, and real GDP is $170. b. $157, and real GDP is $170. c. $191.50, and real GDP is $157. d. $170, and real GDP is $227.50.arrow_forward1.Calculate the value of the country’s GDE (Gross Domestic (Expenditure). 2.Compute the value for the country’s GDP (Gross Domestic Product) at market price.3.Determine the value of the country’s NNI (Net National Income) at market price. 4.If it is predicted that the GDP will increase to 22 000 in 2020, calculate the growth rate between 2019 and 2020.arrow_forwardConsider an economy that produces only computers. The quantity of computers and the price of computers in four successive years are given in the table. A. Compare the nominal GDP growth rates and the real GDP growth rates for 2015, 2016, and 2017. What do you conclude? Which of the two accurately measures the GDP and why? Thank Youuu!!!arrow_forward
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