5) (KEY QUESTION) Consider the following data assuming that these are the only products produced and consumed in the economy: Product 2019 Quantity 2019 Price (S) 2020 Quantity 2020 Price (S) 14 18 16 13 Beer Chocolate 15 11 17 12 Using 2020 as the base year answer the following questions: a. What was the nominal GDP in 2019 and 2020? What was the real GDP in 2019 and 2020? b. c. What was the GDP deflator in 2019 and 2020? 32
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Please solve part a, b & c
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- (a) Briefly explain the National Income Accounts and the balance of payments (b) Briefly describe any two macro-policies by the government of Zambia which are aimed at promoting the agricultural sector in Zambia.3|| Page (c) Using the economic information in the table below, you are required to calculate the GDP for the economy represented by this information. Table.1. Information about GDP ITEM VALUE (K) Final Sales to Consumers 4,924,300,00O Final Sales to Businesses 1,065,300,000 Final Sales to Government 1,358,500,000 Final Sales to Foreigners - 102,300,000Question 1 Suppose an economy consists of only two types of products: laptops and automobiles. Sales and price data for these two products for two different years are shown below: 2021 Quantity sold 2015 2019 Quantity sold Products Price Price Quantity sold 200,000 60,000 Price Laptop Automobiles (RM) 2,000 40,000 500,000 80,000 (RM) 3,000 60,000 450,000 90,000 (RM) 3,500 80,000 Calculate: a) Nominal Gross Domestic Product (GDP) in 2019 and 2021. b) Real Gross Domestic Product (GDP) in 2019 and 2021 using 2015 as base year. c) Based on your answers to questions (a) and (b), which one of them accurately measures the growth of GDP and why? d) Higher GDP is indicated higher income per capital, higher economic growth and increases in distribution of income but GDP does not reflect everything going well the economy. Explain FOUR (4) the limitation in GDP measure with examples.2. Activities included (and not included) in the calculation ofGDP The gross domestic product (GDP) of the United States is defined as the all in a given period of time. Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2020. 2020 GDP Scenario Included Excluded Sofaland, a Swedish furniture company, produces a table at a plant in Virginia on December 5, 2020. It sells the table to a college student on December 24. You chop down a cherry tree on your property in California and make a dining room table in 2020. A similar table sells for $800 in a local furniture store. Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 21, 2020. It sells the car at a dealership in San Francisco on February 10, 2020. Athleticus, a U.S. shoe company, produces a pair of sneakers at a plant in Vietnam on March 10, 2020. Athleticus imports the pair…
- 1. Key facts about economic fluctuations The graph included below approximates United States business cycles between quarter one of 1953 and quarter three of 1957. The shaded region denotes periods of six or more consecutive months of declining real gross domestic product (real GDP). REAL GDP (Billions of dollars) 2700 2600 2500 2400 2300 1953 1954 1955 1956 1957 (?)QUESTION 2 The table below gives the values of different expenditures in the United States during 1999. Answer the following questions about the United States a) Define the concept of Gross Domestic Product (GDP) b) Calculate the value of net exports of goods and services in 1999? c) Calculate (nominal) GDP equal to in 1999? d) What was the (nominal) value of total production equal to in 1999? Note: 1. No need hand writing 2. Please clear answer no whois one a,b,c,d5) (KEY QUESTION) Consider the following data assuming that these are the only products produced and consumedin the economy:Product 2019 Quantity 2019 Price ($) 2020 Quantity 2020 Price ($)Beer 14 18 16 13Chocolate 15 11 17 12Using 2020 as the base year answer the following questions:a. What was the nominal GDP in 2019 and 2020?b. What was the real GDP in 2019 and 2020?c. What was the GDP deflator in 2019 and 2020?d. What was the growth rate of nominal GDP between 2019 and 2020? What was the growth rate of realGDP between 2019 and 2020? What was the growth rate of the GDP deflator between 2019 and 2020?e. Calculate the value of the basket in 2019 and 2020.f. Calculate the CPI for 2019 and 2020.g. Calculate the annual inflation rate over the 2019-2020 period.h. (This part is OPTIONAL in case you want more practice, this type of question is usually on thefinal exam :-) Change your base year from 2020 to 2019. Re-do your answers to parts a, b, and c.
- (1A) Assume the economy of country C produces hotdogs and buns in the following quantities and prices in 2016 and 2017. Assume also that 2016 is the base year and the real GDP will be calculated using 2016 prices. What is the real GDP 2017? Hot Dogs Buns Quantity Price Quantity Price Year 2016 (base year) 20 million $2 15 million $1 Year 2017 22 million $3 16 million $2 (a)$90 million.(b)$98 million.(c)$60 million. (1B) In calculating GDP, which component of spending must be subtracted from total spending to account for the fact that not all private or public spending by U.S. households is directed to U.S. businesses? exports domestic imports (1C) The purchase of new capital goods by a business would fall under which component of GDP? (a)Investment(b)Government(c)Consumption2) Below is the Table showing the annual gross electricity demand (TW.h) of Turkey versus gross do product a) Draw gross domestic product versus electricity consumption and find the equation of the line by the graphical method (be careful determining the dependent and the independent variables) b) By using the equation you have found, predict the electricity demand when GDP becomes 2500 billion S. Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 GDP (billion $) 800 928 1024 1120 1094 1250 1433 1532 1691 1861 1966 2040 2186 gross annual electricity consumption (TWh) 161 175 190 198 194 210 230 242 246 257 266 279 295Question 2 (Mandatory) (1 point) * Nominal GDP -Real GDP 1000 800 600 400 200 1990 1995 2000 2005 2010 Years FIGURE 20-1 Refer to Figure 20-1. Which of the following years was used as the base year for constructing real GDP? 1995 2000 2003 2005 O 2010 Nominal and Real GDP (billions of dollars)
- Exhibit: Components of GDP for an Economy 1 Personal consumption expenditures Gross private domestic investment Net exports Imports Government purchases of goods and services Transfer Payments Value (in billions) (S) $480 billion O-$480 billion $120 billion -$120 billion 1,000 500 300 180 280 90 (Exhibit: Components of GDP for an Economy 1) What is the value of exports?2. Activities included (and not included) in the calculation of GDP The gross domestic product (GDP) of the United States is defined as the all in a given period of time. Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2020. 2020 GDP Included Excluded Scenario An accountant starts a client's 2020 tax return on April 14, 2021, finishing it just before midnight on April 15, 2021. Treetopplers, a U.S. lumber company, produces wood at a plant in Oregon on September 25, 2020. It sells the wood to Buildit and Partners, a developer, for use in the production of a new house that will be built in the United States in 2020. (Note: Focus exclusively on whether production of the wood increases GDP directly, and ignore the effect of production of the new house on GDP.) Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 14, 2020. A family buys the sedan on…Question 1. FTable 1: Quantity Produced and Price of Good Price of an automobile Quantity of automobile produced 100 Price of a loaf of bread Quantity of breads produced Year 2000 Year 2010 $60,000 120 $20 400,000 Suppose an economy produces and consumes only bread and automobiles. The table above includes data for two different years. Using the year 2000 as the base year, compute the following statistics for each year: nominal GDP, real GDP, GDP price deflator, and the CPI. |S50,000 $10 500,000