EBK ECONOMICS: PRINCIPLES AND POLICY
13th Edition
ISBN: 9781305465626
Author: Blinder
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 23.A, Problem 2TY
a)
To determine
The real GDP for each year.
b)
To determine
The percentage change in nominal GDP and real GDP from 1992 to 2002 and from 2002 to 2012.
c)
To determine
The percentage change in the GDP deflator from 1992–2002 and 2002–2012.
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Students have asked these similar questions
Compute the percentage change in the real GDP in 2018 and 2019 from the preceding year.
1. Calculate the percentage change in real GDP in each of the years shown.
2.Then once you've calculated the percentage change for each of the years, use the orange points (square symbol) to plot your results on the following graph, rounded to the nearest percent. For each year, plot the percentage change from the year before.
You are given the following:
Year
Quantity of Cars
Price of Cars
Quantity of Buses
Price of Buses
2013
5 million
$20,000
1 million
$100,000
2014
5.1 million
$22,000
1.2 million
$102,000
Base Year = 2013
2a. Calculate nominal GDP for 2013.
2b. Calculate nominal GDP for 2014.
2c. Calculate real GDP for 2014.
2d. Calculate the GDP Deflator to the nearest tenth for 2014.
2e. What does your previous number mean?
2f. Calculate the CPI to the nearest tenth for 2014. (Use 2013 as the base year.)
Chapter 23 Solutions
EBK ECONOMICS: PRINCIPLES AND POLICY
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Similar questions
- Why might even real GDP be a misleading index of changes in output between 1950 and 2015 in the United States?arrow_forwardSuppose the information in the following table is for a simple economy that produces only four goods and services: shoes, hamburgers, shirts, and cotton. Assume that shoes, hamburgers, and shirts are final goods and that all the cotton is used in the production of shirts. Calculate the GDP deflator for 2015. Use 2009 as the base year for the calculations. Provide your answer as a number rounded to two decimal places. Do not include any symbols, such as "$," "=," "%," or "," in your answer.arrow_forwardWhich of the following is wrong? Select one: a. In the expenditures approach to GDP we subtract imports because they represent spending on production outside the borders of a country. b. Price indexes are computed by dividing the price of a specific collection or market basket of output in a particular period by the price of the same market basket in a base period and multiplying the result (the quotient) by 100. c. Exports are subtracted from imports in calculating GDP because exports are not available for domestic consumption. d. Gross private domestic investment exceeds depreciation in an economy that experiences expanding production capacity.arrow_forward
- Consider an economy that produces and consumes Bread and Automobile. Data for two different years 2005 and 2010 is given in the following table. Year 2005 2010 Price of Automobiles $ 5000 $ 6000 Price of a loaf of bread $10 $20 Number of automobiles produced 100 120 Number of loaves of bread produced 500,000 400,000 Using the year 2005 as a base year,a. Calculate the nominal and real GDP of 2010.b. Find the value of GDP Deflator for the year 2010 and interpret.c. Calculate the inflation rate in 2010.arrow_forwardConsider a simple economy that produces two goods: fries and burgers. The table shows the economy's production over several years. Calculate the real GDP for 2006 using 2004 as the base year. Year 2004 2005 2006 real GDP: Price of fries (in dollars) 6.00 8.00 9.00 Number of fries 4 4 5 Price of burgers (in dollars) 2.00 4.00 7.00 Number of burgers 3 5 8 dollarsarrow_forward
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