Output and Prices for 1995 and 1996 of Product Quantity produced in 1995 Price in 1995 Quantity produced in 1996 Price in 1996 Good J 89 $9.75 96 $9.5 Good K 86 $8.5 79 $9 Given the information in the table above for an economy that produces only Good J and Good K, answer the questions that follow. Do not enter dollar signs or commas in your answers. 1. What was the value of nominal GDP in the year 1995? $ 2. What was the value of nominal GDP in the year 1996? $ 3. What was the value of real GDP in the year 1995 if 1996 is the base year? $ 4. What was the value of real GDP in the year 1996 if 1995 is the base year? $

Output and Prices for 1995 and 1996 of Product Quantity produced in 1995 Price in 1995 Quantity produced in 1996 Price in 1996 Good J 89 $9.75 96 $9.5 Good K 86 $8.5 79 $9 Given the information in the table above for an economy that produces only Good J and Good K, answer the questions that follow. Do not enter dollar signs or commas in your answers. 1. What was the value of nominal GDP in the year 1995? $ 2. What was the value of nominal GDP in the year 1996? $ 3. What was the value of real GDP in the year 1995 if 1996 is the base year? $ 4. What was the value of real GDP in the year 1996 if 1995 is the base year? $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The graph included below approximates United States business cycles between quarter one of 1947 and quarter three of 1951. The shaded region denotes periods of six or more consecutive months of declining real gross domestic product (real GDP). 2170 2070 E 1970 1870 1770 1947 REAL GOP (Billions of dollars) 1948 1949 YEAR 1950 1951 Source: "Current-dollar and Real GDP Bureau of Economics Analysis, last modified May 1, 13, accessed May 15, 13, http://www.bea.gov/national/shs/gdplev.xls
Gmpurts cnter the calcula Week 3 Homework sPunauo:i spaubueon. X 13 newconnect.mheducation.com/flow/connect.html Saved 3 Homework G) The following table gives the the value of the consumer price index for 2007 through 2015. Consumer Price Index Percentage Increase Year 207.3 2007 215.3 2008 214.5 2009 218.1 2010 224.9 2011 2012 229.6 233.0 2013 236.7 2014 237.0 2015 Instructions: To answer the following questions, complete the percentage increase column in the rounded to two decimal places and include a negative sign ) where appropriate. a) What was the inflation rate in 2009? b) What was the percentage increase of the average price level from 2008 to 2015? 9% inflation was lowest in (Click to select) c) Inflation was highest in (Click to select) 10 of 15 Prev Ne e ere to search w SUS
6 7 The personal consumption expenditures price index Which federal agency is the source of consumer price index (CPI) data? O The U.S. Bureau of Labor Statistics The U.S. Bureau of Economic Analysis The U.S. Social Security Administration The Federal Reserve Bank of St. Louis Recall the formula used to calculate the real value of a wage. If the nominal wage is constant in value and the general price level increases over time, what will happen to the value of the real wage? O It will stay constant. O It will increase. It be equal to 100. It will decrease.
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. Instructions: Enter your responses in the gray-shaded cells. Round your answers to 2 decimal places. Nominal GDP, Billions Price Index Year Real GDP, Billions Effect on Nominal GDP (2005 = 100) 1978 $2,308.80 40.4 1988 5,115.40 66.98 1998 8,808.50 85.51 2008 14,456.40 108.48 2018 20,519.30 128.59
The BBS reported the following CPI data:June 2016- 201.9 June 2017- 207.2 June 2018- 217.4 a) Calculate the inflation rates for the years ended June 2017 and June 2018. How did theinflation rate change in 2018?b) If the cost of a market basket in 2016 is 2,000, t what is the cost of the same basket ofgoods and services in 2017? In 2018?c) Why might these CPI numbers be biased? Explain all the reasons with appropriateexamples in each cased) How do alternative price indexes help to avoid the bias in the CPI numbers? (Hint: GDPdeflator, PPI are some of the prominent alternative price indexed).e) Give example of the pros and cons of each index including CPI?
Consider a simple economy that produces only three goods. Assume that all goods produced are consumed in same period (no inventories). Following table provides information on price and quantity produced and consumed of each of three goods: 2021 2021 2022 2022 Price Quantity Price Quantity Good 1 25 25 40 33 Good 2 45 45 60 35 Good 3 80 50 90 45 Calculate nominal and real GDP for both years using 2021 as the base year. Then calculate inflation rate derived from the GDP deflator and real GDP growth between 2021 and 2022. Calculate Consumer Price Index (CPI) for each year using share of consumption of each product in 2021 as a weight. Then find CPI inflation rate between 2021 and 2022. Is this inflation rate different from GDP deflator inflation rate? Discuss reasons for differences, if any. True, false or uncertain? Above results show that GDP deflator is worse than CPI for measuring changes in average prices in economy. Comment
... ... Using the data In the table below related to nominal GDP and the chaln-welghted price deflators for gross domestic product (e.g., price Index for GDP), answer the followIng questions: Nominal GDP (in Billions) Chain-weighted Price Deflators (Index) for GDP 2012 = 100 (Base Year) Year 78.1 2001 10,128 10,469 82.6 2004 11,685 84.8 12,422 87.4 13,178 90.1 9007 13,808 92.5 14,291 600 2010 14,527 96.1 2011 15,518 2012 16,163 0 00 101.8 16,768 2014 2015 18,037 104.6 2016 18,754 105.7 2017 19,543 107.8 20,612 21,433 112.3 Instructlons: For parts a, c, d, and e, enter your responses as a percentage rounded to one deClmal place. For part b, round your response to the nearest billion. a. Calculate the percentage change In nominal GDP between 2016 and 2017. b. Calculate real GDP In 2017 at prices of 2016. 24 C. Calculate the percentage change in real GDP between 2016 and 2017. d. What Is the percentage change In nomlnal GDP between 2016 and 2017 attributed to changing prices? e. What Is…
b) Why is GDP critically linked with inflation and unemployment rate?
Consider an economy that produces and consumes bread and automobiles. The table includes data for two different years. 2015 2015 Quantity Price 140 $55000 420000 $20 Good Automobiles Bread 2010 Quantity 80 600000 Round answers to to places after the decimal where necessary 2010 Nominal GDP = $ a. Using 2010 as the base year, compute nominal GDP, real GDP, the implicit price deflator for GDP, and the CPI for each year. 2010 Real GDP = $ 2010 Price 2010 GDP deflator = 2010 CPI = $48000 $9 2015 Nominal GDP = $ 2015 Real GDP = $ 2015 GDP deflator = 2015 CPI =
Give typing answer with explanation and conclusion Consider an economy where the average citizen consumes only two goods, 400 cups of coffee at $3 each and 200 brownies at $4 each in 2019. Assume this is the consumption basket used for calculating the CPI. In 2020, the price of one of the goods decreases by $1, while the price of the other good increases by $2. Assume 2019 is the base year. Based on this information, there are two possible inflation rates. What are these possible inflation rates?
Consider the price and quantity information for the three goods listed in the table below. You may assume the base year is 2018. Item Quantity Price Price Quantity 2018 2018 2019 2019 Movie $10 $11.87 14 tickets Bags of 2 $3 $3.24 6 popcorn Drinks of soda 16 $1 $1.71 Based on the GDP deflator method, what was the rate of inflation between the two years? Round your answer to two decimal places. Do not enter a percent sign. SUS
A) Inflation is the steady and widespread increase in prices. The inflation rate, measured by CPI, rose .1% in May (since April) and rose a total of 4% year-over-year (May 2022 to May 2023). Read the BLS report on the Consumer Price Index and identify an “item” or “all items” and begin to consider why the price increased. Do a news search or using (clear, logical, rational) reasoningexplain whether prices are increasing because demand increased or because supply decreased. Graph and explain your answer