An 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?

Q: The following table gives nominal GDP and the price index for two years. Find real GDP in each year,…

A: Growth rate = (value in 2011 / value in 2010) - 1

Q: Refer to the following table of Annual GDP in the US. Year Nominal GDP Price Index Real GDP $1,878…

A: Real GDP for 1986 can be calculated as follows: Real GDP1986=Nominal GDPPrice…

Q: What does the Consumer Price Index (CPI) measure? Be specific about what the categories of goods and…

A: Macroeconomics is an important aspect for a country. Aggregate demand and aggregate supply are…

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A: Nominal GDP = Aggregate value of (Current year price x Current year quantity) Real GDP = Aggregate…

Q: Q3) Refer to the information provided in Table below Find the nominal and real GDP in 2017, 2018 and…

A: Nominal GDP - Nominal GDP calculates GDP at current prices (not adjusted for inflation). Real GDP -…

Q: The difference between the formulae used in the computations of CPI and GDP deflator is a) The CPI…

A: There are so many economic indicators to measure price index. The two important economic indicators…

Q: such as the consumer prices ind

A: If inflation is high, the CPl is the better measure of the overall price level; if inflation is low…

Q: 1. The following prices and quantities produced were recorded in computer land during the years…

A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…

Q: "Consumer Price IndexGiven the following data, what was the value of the consumer price index in the…

A: The inflation rate, which describes how general prices fluctuate over the previous year, is…

Q: Suppose that the prices of capital goods (goods purchased by firms as investment) rose. How would…

A: In an economy, capital goods at ethe goods that are produced and consumed for the long-run.

Q: Nominal GDP 2018 is $24,200. What is the "real" 2018 GDP measure in 2012 prices if the 2018 price…

A: Given data: Nominal GDP of 2018 is $24200. Price index in 2018 is 1.05

Q: What is the formula for the consumer price index in 2020?100* (cost of basket in 2020) / (cost of…

A: Consumer price index is used to compute the change in price over time by considering the market…

Q: Using the year 2000 as the base year, compute the following statistics for each year: nominal GDP,…

A: Nominal GDP is the value of all goods and services produced by the country in a fiscal year at…

Q: the following table shows nominal GDP and an appropriate price index for a group of selected years.…

A: The Real GDP can be calculated by the given equation.

Q: 2009 Quantity 2009 Price 2010 Quantity 2010 Price (base year) Food 2.5 2.5 5 Entertainment 2 Clothes…

A: We have the following information-   2009 Quantity 2009 Prices(base year) 2010 Quantity 2010…

Q: The following table gives nominal GDP and the price index for two years. Find real GDP in each year,…

A: Here, the given table provides information about nominal GDP and price index  for 2010 and 2011.

Q: i Find the nominal GDP for the current year and base year. ii What is the percentage increase in…

A:

Q: The GDP price index compares the price (or cost) of goods and services that make up GDP in a…

A: The nations have many entities in the form of consumers, households, producers, investors,…

Q: A small nation of ten people idolizes the TV show American Idol. All they produce and consume are…

A: CPI(consumer price index) and GDP deflator are the methods of measuring inflation in the particular…

Q: The following table contains data on the fictional country of Penguinia. Presented are the country's…

A: Formula for Real GDP Real GDP = Nominal GDPGDP CHAIN PRICE INDEX×100 Calculating the values of the…

Q: The following table shows nominal GDP and an appropriate price index for a group of selected years.…

A: Real GDP = (Nominal GDP/Deflator)*100 If the Real GDP is greater than nominal, then it is inflating…

Q: Show your work for the following questions.if nominal output rises from $240billion to$259 billion…

A: Given  Nominal output rises from $240billion to$259 billion. GDP deflator rises from 100 to 105.

Q: Use the table to answer the question that follows. Year Consumer price index (CPI) Goods produced…

A: Nominal GDP is the product of price and quantity of good produced in the given year. Real GDP is the…

Q: Suppose the CPI increased by 5 percent over each of the last 5 years while the GDP price index…

A: If CPI increased considerably,used goods or consumer goods prices increased to a greater extent…

Q: In 2012, the nominal GDP is $1.6 trillion but the real GDP is $1.8 trillion. What is the implication…

A: Gross domestic product (GDP) refers to the value of final goods and services produced within the…

Q: Explain the differences between the Consumer Price Index (CPI) and the GDP deflator

A: The consumer price index and GDP deflator are both used to measure inflation in the economy.…

Q: Consider an economy that produces and consumes bread and automobiles. In the table below are data…

A: Given information.     Year 2010 Year 2025 Price of an auntomobile 5000 6000 Price of a loaf…

Q: If nominal GDP increases by 5 percent a year and the GDP price index rises by 2 percent a​ year,…

A: The economies around the world tend to work with the motive of enhancing their economic development,…

Q: Nominal GDP in Nowhereland in 2002 and 2003 increased from $4 trillion to $4.8 trillion. Can you say…

A: Nominal Gdp is the value of services and goods produced in an economy over a given  period of time.…

Q: Consider an economy that produces and consumes bread and automobiles. In the table below are data…

A: Nominal GDP measures the value of output at current year prices. Real GDP measures the value of…

Q: compare and contrast the calculations for the consumer price index and the GDP price index as…

A: Formula for GDP price indexGDP Deflator=Nominal GDPReal GDP ×100 where Nominal GDP is the market…

Q: Nominal GDP 2018 = $24,200 What is the “real” 2018 GDP measure in 2012 prices if the 2018 price…

A: Real GDP in 2018= Nominal GDP in 2018/ Price index Nominal GDP would be based on current prices…

Q: In each of the following cases, explain clearly how the CPI might misrepresent changes in consumer…

A: Аns  а:  The  bаskets  inсlude  the  соmmоdities  seleсted  fоr  соmрutаtiоn  оf  СРI.  If…

Q: Suppose in a given year, GDP was $8,542 billion and the GDP chain price index for that year is…

A: Given the GDP = $8542 Price index = 119.5

Q: Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP…

A: Nominal GDP defines the production in an economy which includes the current prices of goods and…

Q: What is the diference between CPI and GDP deflator tracking? CPI tracks price changes in all…

A: Inflation is measured by the CPI.

Q: If 2010 is the base year for real GDP calculations , we know for certain that nominal GDP:     In…

A: Given that: 2010 is the base year for calculation

Q: Which of the following macroeconomic variables is the most seasonally procyclical? 1- Expenditure on…

A: A positive correlation between the value of a good, a service, or an economic indicator and the…

Q: Define consumer price index And tell why it is important to the economy.

A: CONSUMER PRICE INDEX (CPI) It is a measure for estimating changes in the price paid by the consumer…

Q: When calculating real GDP we must use the GDP deflator for that year. This allows us to adjust…

A: Real GDP is calculated as: Nominal GDPDeflator

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A: GDP deflator takes into account the impact of inflation on the GDP of the economy during a given…

Q: (/ The following table shows nominal GDP and an appropriate price index for a group of selecte…

A: GDP price index = (nominal GDP / real GDP) *100 => Real GDP = (nominal GDP / GDP price index)*100…

Q: Refer to Table 22.5. If 2014 is the base year, the consumer price index in 2013 is 0.893. 0.96.…

A: Options A is The correct Answer

Q: Find the nominal and real GDP in 2017, 2018 and 2019.  Then explain the diffrences between RGDP and…

A: Nominal Gdp is the current market value of the output that is produced in a country in a given…

Q: The following table gives nominal and real GDP for an economy for two years. Year 1 Year 2 1540.0…

A: Ans. The value of the GDP deflator in the country is the ratio of the Nominal GDP and Real GDP…