MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Question
Chapter 5, Problem 15SQ
To determine
The broadly priced price index of the economy.
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Students have asked these similar questions
If nominal GDP increases by 5 percent a year and the GDP price index rises by 2 percent a year, then real GDP increases by _______.
A.
2.5 percent a year
B.
3 percent a year
C.
7 percent a year
D.
10 percent a year
A country’s nominal GDP and CPI (consumer price index) are shown in the following table
Year
2015
2016
2017
Nominal GDP
$4.5 Billion
$5.0 Billion
$6.0 Billion
CPI
100
120
140
If we choose the year 2015 as the base year, then the highest real GDP is in
Answers:
A.
Year 2016
B.
Year 2017
C.
Year 2015
D.
All the same.
Given the following output for the economy of Scoob calculate the nominal GDP in 2020 in $.
Gismo
Applet
Widgets
Year
Price
Quantity
Price
Quantity
Price
Quantity
2019
$100
1
$10
8
$5
4
2020
$110
1
$12
10
$4
5
A.
225
B.
250
C.
200
D.
none of the above
Chapter 5 Solutions
MACROECONOMICS FOR TODAY
Ch. 5.6 - Prob. 1YTECh. 5 - Prob. 1SQPCh. 5 - Prob. 2SQPCh. 5 - Prob. 3SQPCh. 5 - Prob. 4SQPCh. 5 - Prob. 5SQPCh. 5 - Prob. 6SQPCh. 5 - Prob. 7SQPCh. 5 - Prob. 8SQPCh. 5 - Prob. 9SQP
Ch. 5 - Prob. 10SQPCh. 5 - Prob. 11SQPCh. 5 - Prob. 12SQPCh. 5 - Prob. 13SQPCh. 5 - Prob. 1SQCh. 5 - Prob. 2SQCh. 5 - Prob. 3SQCh. 5 - Prob. 4SQCh. 5 - Prob. 5SQCh. 5 - Prob. 6SQCh. 5 - Prob. 7SQCh. 5 - Prob. 8SQCh. 5 - Prob. 9SQCh. 5 - Prob. 10SQCh. 5 - Prob. 11SQCh. 5 - Prob. 12SQCh. 5 - Prob. 13SQCh. 5 - Prob. 14SQCh. 5 - Prob. 15SQCh. 5 - Prob. 16SQCh. 5 - Prob. 17SQCh. 5 - Prob. 18SQCh. 5 - Prob. 19SQCh. 5 - Prob. 20SQ
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- a. The overall price level increased 50% from the year 2018 to 2019 in the country, and the price index is 100 in 2018, what is the value of price index in 2019? 3. b. Calculate the nominal and real GDP in 2018 and 2019 by taking 2018 as base year.3 c. Take 2019 as base year instead of 2018 and calculate the real GDP for 2018. Is the real GDP of the 2018 changes? Why? Country Name Year Exports Consumption Investment Net Exports Government Expenditure Imports Cambodia 2018 61.315 75.209 23.341 -1.699 4.904 63.014 Cambodia 2019 67.209 81.655 26.660 -1.512 5.288 68.721arrow_forwardAn economy has the following real GDP and nominal GDP price index between 1989 and 1990:year Real GDP Nominal GDP 1989 ...... $1,000B........... $1,200B 1990........$1,050B............$1,386B a) what is the GDP price index for 1989? b) what is the GDP price index for 1990? c) what is the inflation rate as measured by the GDP price index between 1989 and 1990?arrow_forward(a) Distinguish between the consumer price index (CPI) and the producer price index (PPI). (b) Why can the PPI be useful for predicting changes in the CPI?arrow_forward
- Calculate the missing information in the table 17.1. Year Real GDP Nominal GDP GDP Deflator Price of Nutmeg ($ per nutmeg) Price of Drapes ($ per Drapes 2013 2700 70 10 8 2014 3600 100 12 9 2015 3600 4680 14 10arrow_forwardlculate the missing information in the table taking into consideration that the base year is2015 YEAR Price of Books Quantity of Books Price of Socks Quantity of Socks Nominal GDP Inflation Rate Real GDP GDP Deflator CPI 2015 10 120 12 200 2016 12 300 15 200 2017 14 275 18 180arrow_forwardConsider an economy that produces and consumes bread and automobiles. The table below presents the data for two different years Bread (a loaf) Automobile Year Price Quantity Price Quantity 2013 $10 500,000 $50,000 100 2021 $20 450,000 $60,000 150 Cost of basket for both 2013 & 2021 CPI (consumer price index) for 2021arrow_forward
- If the consumer price index was 70 in one year and 100 in the next year then the rate of inflation was? Compare GDP deftlator and Consumer price Indexarrow_forward10 - : What do we get if we divide the nominal GDP value for a certain period in a country by the real GDP value? a) GDP deflator B) PPI NS) GDPR D) CPI TO) GNParrow_forwardIf nominal GDP grows by 7% but inflation rises 3%, what is the real GDP?arrow_forward
- CALCULATE CONSUMER PRICE INDEX,PRODUCER PRICE INDEX AND WHOLESALE PRICE INDEX.(CPI,PPI,WPI).arrow_forwardd) Compute the GDP deflator in 2018.e) Compute the GDP deflator in 2019.f) What caused the increase in GDP from 2018 to 2019? pls put in table form: Items Quantity Price Total tea 200 --- --- shoes 50 --- --- Nominal/Real GDP ---arrow_forwardWhat is the relation between Gross Domestic Product (GDP) and Gross Happiness Index (GHI): Select one alternative: It is impossible to compare values of GDP and GHI GHI is always higher GDP is always higherarrow_forward
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