Question 2 (Activity 7.1)Suppose production and prices of food and clothing (the only two goods produced in this economy) in 2006 and 2007 are as follows: (base year = 2006)Year Quantity of Food Price of Food Quantity of Clothing Price of Clothing2006 20$1515$52007 60$1830$6Calculate:(i) nominal and real GDP in 2006 and 2007,(ii) the GDP deflator(iii) the growth rate in real output.

Nominal GDP measures the value of goods and services measured at current prices whereas real GDP…

Question 2 (Activity 7.1) Suppose production and prices of food and clothing (the only two goods produced in this economy) in 2006 and 2007 are as follows: (base year = Year Quantity of Food Price of Food Quantity of Clothing Price of Clothing 2006 20 $15 15 $5 2007 60 $18 30 $6 Calculate: (i) nominal and real GDP in 2006 and 2007. (ii) the GDP deflator (iii) the growth rate in real output.

Question 2 (Activity 7.1) Suppose production and prices of food and clothing (the only two goods produced in this economy) in 2006 and 2007 are as follows: (base year = Year Quantity of Food Price of Food Quantity of Clothing Price of Clothing 2006 20 $15 15 $5 2007 60 $18 30 $6 Calculate: (i) nominal and real GDP in 2006 and 2007. (ii) the GDP deflator (iii) the growth rate in real output.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Measuring A Nation's Income

Section: Chapter Questions

Problem 7PA

See similar textbooks

Similar questions

What are the main components of measuring GDP with what is produced?
What does GDP not tell us about the economy?
Why do you think that GDP does not grow at a steady rate, but rather speeds up and slows down?
Question 2 (Activity 7.1) Suppose production and prices of food and clothing (the only two goods produced in this economy) in 2006 and 2007 are as follows: (base year = 2006) Year Quantity of Food Price of Food Quantity of Clothing Price of Clothing 2006 20 $15 15 $5 2007 60 $18 30 $6 Calculate: (i) nominal and real GDP in 2006 and 2007, (ii) the GDP deflator (iii) the growth rate in real output.
Question 2 (Activity 7.1) Suppose production and prices of food and clothing (the only two goods produced in this economy) in 2006 and 2007 are as follows: (base year = 2006) Year Quantity of Food Price of Food Quantity of Clothing Price of Clothing 2006 20 $15 15 $5 2007 60 $18 30 $6 Calculate: ) nominal and real GDP in 2006 and 2007, (ii) the GDP deflator (ii) the growth rate in real output. Question 3 Participants Cost of Value of Materials Sales Farmer $ 100 Cone factory 100 250 and ice cream-maker 400 Middleperson Vendor 250 400 500 (i) Calculate the value added at each stage of production (i) Calculate the contribution to GDP from the good
Question 2 Suppose production and prices of food and clothing (the only two goods produced in this economy) in 2006 and 2007 are as follows: (base year = 2006) Year Quantity of Food Price of Food Quantity of Clothing Price of Clothing 2006 20 $15 15 $5 2007 60 $18 30 $6 Calculate: (i) nominal and real GDP in 2006 and 2007, (ii) the GDP deflator (iii) the growth rate in real output.
Suppose production and prices of food and clothing (the only two goods produced in this economy) in 2006 and 2007 are as follows: (base year = 2006) Year Quantity of Food Price of Food Quantity of Clothing Price of Clothing 2006 20 $15 15 $5 2007 60 $18 30 $6 Calculate: (1) nominal and real GDP in 2006 and 2007, (2) the GDP deflator (3) the growth rate in real output.
3) Answer the following questions about country A. a) What was GDP equal? b) What was the value of total production equal to? c) What approach did you use to make this calculation? Items RM (million) Agriculture, Forestry & Fishing 25874 Construction 89756 Mining & Quarrying 12345 Electricity, Gas & Water 96325 Manufacturing 70002 Government Services 78953 Wholesale, Retail, Hotel & Restaurant 258 Finance, Insurance & Real Estate 456 Transport, Storage & Communication 999 Other Services 451 Factor Income Paid Abroad 452 Indirect Taxes 200 Factor Income Received From Abroad 500 Subsidies - 85 Depreciation 891
Consider the following data on U.S. GDP: Year Nominal GDP GDP Deflator (Billions of dollars) (Base year 2009) 2016 18,707 105.93 1996 8,073 73.18 The growth rate of nominal GDP between 1996 and 2016 was , and the growth rate of the GDP deflator between 1996 and 2016 was . (Hint: The growth rate of a variable XX over an NN-year period is calculated as 100×((XfinalXinitial)(1N)−1)100×XfinalXinitial1N−1) Measured in 2009 prices, real GDP was billion in 1996 and billion in 2016. (Note: Select the answers closest to the values you compute.) The growth rate of real GDP between 1996 and 2016 was . The growth rate of nominal GDP between 1996 and 2016 was than the growth rate of real GDP.
A hypothetical country of Narnia produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown in the following table. The base year is 2017. Year 2016 2017 2018 2019 Price (Dollars per movie) 7.6% 7.5% Movies 7.2% 7% 10.00 11.00 12.00 12.00 Quantity Quantity (Movies) (Dollars per bag) (Bags) 500 600 650 625 Popcorn Refer to Table 23-5. What was the rate of inflation for Narnia in 2019? (Hint: round-off to the nearest decimal point) Price 5 4 5 6 1,000 900 950 925
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
Quantity (2015) 20 Price (RM) (2015) 3.00 Quantity (2016) 22 Price (RM) (2016) Item Loaves of bread Jugs of soda 4.00 20 2.00 30 1.50 1. The tables above give the purchases of an average consumer in a small economy. Suppose 2015 is the reference base period. e) What is the expected real income in 2016? f) What is the nominal GDP in 2015? In 2016? g) What is the real GDP in 2015? In 2016? h) Does the economy achieve economic growth in 2016?