EBK ECONOMICS TODAY
18th Edition
ISBN: 9780133920116
Author: Miller
Publisher: YUZU
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Chapter 8, Problem 6P
To determine
To calculate:
Real
To recalculate: The
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Suppose you are reading a magazine showing a figure that plots the U.S. GDP from 1900 to 2012
in "2005 chained dollars" . It means:
a) The GDP is calculated using 2005 prices;
b) The GDP is calculated applying the variable-weighted price-index approach with 2005 as the base
9.
year;
c) The GDP is price-adjusted based on the chain-weighted price-index approach with 2005 as the base
year.
d) None of the above.
The following table contains data on the fictional country of Penguinia. Presented are the country's nominal GDP, real GDP, and the GDP chain price index for various years. The base year for the chain price index is 1993.
Using the data in the table, fill in the blank cells with the correct values.
Year
Nominal GDP
Real GDP
GDP Chain Price Index
2002
$8,766
$6,871
127.58
2006
$8,699
119.08
2010
$9,203
$7,926
From 2002 to 2006, nominal GDP by , while real GDP by .
How would I fill this out?
Chapter 8 Solutions
EBK ECONOMICS TODAY
Ch. 8 - Prob. 8.1LOCh. 8 - Prob. 8.2LOCh. 8 - Prob. 8.3LOCh. 8 - Prob. 8.4LOCh. 8 - Prob. 8.5LOCh. 8 - Prob. aFCTCh. 8 - Prob. bFCTCh. 8 - Prob. cFCTCh. 8 - Prob. dFCTCh. 8 - Prob. eFCT
Ch. 8 - Prob. fFCTCh. 8 - Prob. 1CTQCh. 8 - Prob. 2CTQCh. 8 - Prob. 1FCTCh. 8 - Prob. 2FCTCh. 8 - Prob. 1PCh. 8 - Prob. 2PCh. 8 - Prob. 3PCh. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Prob. 6PCh. 8 - Prob. 7PCh. 8 - Prob. 8PCh. 8 - Prob. 9PCh. 8 - Prob. 10PCh. 8 - Prob. 11PCh. 8 - Prob. 12PCh. 8 - Prob. 13PCh. 8 - Prob. 14PCh. 8 - Prob. 15PCh. 8 - Prob. 16PCh. 8 - Prob. 17PCh. 8 - Prob. 18P
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- The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP. Indicate in each calculation whether you are inflating or deflating the nominal GDP data. Year Nominal GDP, Billions Price Index (2005=100) Real GDP, Billions 1968 $909.8 22.01 1978 $2,293.8 40.40 1988 $5,100.4 66.98 1998 $8,793.5 85.51 2008 $14,441.4 108.48arrow_forwardSuppose that an economy produces two goods: laptops and books. The quantity produced and the prices of these items for 2019 and 2020 are shown in the table below: Year Quantities produced Price ($) Laptops = 60 = 220 Laptops ? Books 2019 Books = 1200 Laptops = 100 Books = ? Laptops = 200 2020 Books 8 = Instructions: Round your answer to two decimal places. a. Let's assume that the base year was 2019, so that real GDP in 2019 equals nominal GDP in 2019. If the real GDP was $18,000 in 2019, the price of books must have been $ Instructions: Round your answer to the nearest whole number. b. Using your answer from part (a), if the growth rate in nominal GDP was 15 percent, have been produced. books must Instructions: Round your answer to one decimal place. c. Using your answers from parts (a) and (b), the growth rate in real GDP between 2019 and 2020 was percent.arrow_forwardWhat is the relationship of the GDP deflator to real GDP? To make comparisons across time or across borders, one must use the notion of a GDP deflator to convert nominal GDP into real GDP for comparisons. Nominal variables are in current dollars and have price level changes such as inflation and deflation included in them. Real variables are in constant dollars due to the factoring out of price level changes using a base year and a deflator. What is the current nominal GDP for the US economy? What is the current real GDP for the US economy?arrow_forward
- Let's assume that, in the United States, during March 2021, the Consumer Price Index was equal to 249.3, then during the base year, the Consumer Price Index was:arrow_forwardThe following table contains data on the fictional country of Penguinia. Presented are the country's nominal GDP, real GDP, and the GDP chain price index for various years. The base year for the chain price index is 2011. Using the data in the table, fill in the blank cells with the correct values. Year Nominal GDP Real GDP GDP Chain Price Index 2014 $8,766 $6,871 127.58 2017 $8,699 119.08 2020 $9,203 $7,926 From 2014 to 2017, nominal GDP ________ by __________ , while real GDP _______ by ___________ .arrow_forwardIn 2019, nominal GDP is than real GDP. This means that the purchasing power of the currency in 2019 is than the purchasing power of the currency in the base year. Why is real GDP a more accurate measure of an economy's production than nominal GDP? Real GDP includes the value of exports, but nominal GDP does not. Real GDP is not influenced by price changes, but nominal GDP is. Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods and services an economy consumes. The growth rate of real GDP per capita between 2016 and 2017 is . Assume that real GDP per capita is a good measure of living standards. Which of the following sentences best describes what happened in this economy between 2016 and 2017? Living standards because of which of the following? Real GDP growth outpaced population growth. Population growth outpaced real GDP growth. Real GDP…arrow_forward
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