Macroeconomics
13th Edition
ISBN: 9780134744452
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 4, Problem 26APA
(a)
To determine
Explain what is wrong with the growth rate of real
(b)
To determine
Determine how does the price of a smartphone today compared with the 1991 prices of items supports the arguments put forward by Mr. Feldstein.
(c)
To determine
Determine how the falling share of household production in total production modifies the argument of Mr. Feldstein.
(d)
To determine
Determine the reasons that make the growth rate of real GDP per person an incomplete measure of the standard of living.
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Consider 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. Calculate the Nominal GDP and Real GDP. What trends do you observe? Show all your calculations.
B. Calculate the growth rate of nominal GDP for 2015, 2016, and 2017. Round your answers to one decimal place. What trends do you observe?
C. Calculate the growth rate of real GDP for 2015, 2016, and 2017. Round your answers to one decimal place. What trends do you observe?
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The following table shows data for a hypothetical economy in 2017 and 2018.
Use the table to answer the questions that follow.
2017
2018
Population
800,000
808,000
Number of Hours Worked
2,000,000,000
2,000,000,000
Real GDP
$16,000,000,000
$16,644,800,000
Real GDP per Person
Labor Productivity
2. The growth rate of the population between 2017 and 2018 is ?
3.Calculate real GDP per person in 2017 and 2018 and enter the values in the previous table.
The growth rate of real GDP per person between 2017 and 2018 is ?
4.
Assuming that real GDP per person is a good measure of living standards, between 2017 and 2018, living standards for which of the following reasons?
a.Productivity growth outpaced population growth.
b.The number of hours worked remained the same.
c.Population growth outpaced productivity growth.
Q2: 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.
Chapter 4 Solutions
Macroeconomics
Ch. 4.1 - Prob. 1RQCh. 4.1 - Prob. 2RQCh. 4.1 - Prob. 3RQCh. 4.2 - Prob. 1RQCh. 4.2 - Prob. 2RQCh. 4.2 - Prob. 3RQCh. 4.2 - Prob. 4RQCh. 4.2 - Prob. 5RQCh. 4.3 - Prob. 1RQCh. 4.3 - Prob. 2RQ
Ch. 4.3 - Prob. 3RQCh. 4.3 - Prob. 4RQCh. 4.3 - Prob. 5RQCh. 4 - Prob. 1SPACh. 4 - Prob. 2SPACh. 4 - Prob. 3SPACh. 4 - Prob. 4SPACh. 4 - Prob. 5SPACh. 4 - Prob. 6SPACh. 4 - Prob. 7SPACh. 4 - Prob. 8SPACh. 4 - Prob. 9APACh. 4 - Prob. 10APACh. 4 - Prob. 11APACh. 4 - Prob. 12APACh. 4 - Prob. 13APACh. 4 - Prob. 14APACh. 4 - Prob. 15APACh. 4 - Prob. 16APACh. 4 - Prob. 17APACh. 4 - Prob. 18APACh. 4 - Prob. 19APACh. 4 - Prob. 20APACh. 4 - Prob. 21APACh. 4 - Prob. 22APACh. 4 - Prob. 23APACh. 4 - Prob. 24APACh. 4 - Prob. 25APACh. 4 - Prob. 26APACh. 4 - Prob. 27APACh. 4 - Prob. 28APA
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