Two countries start with equal GDPS. The economy of Country A grows at an annual rate of 3 whereas the economy of Country B grows at an annual rate of 4 percent. After 25 yeara, how much Country B's economy than Country A's economyi

Two countries start with equal GDPS. The economy of Country A grows at an annual rate of 3 whereas the economy of Country B grows at an annual rate of 4 percent. After 25 yeara, how much Country B's economy than Country A's economyi

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter6: How Statisticians Measure Inflation

Section: Chapter Questions

Problem 1TY

See similar textbooks

Related questions

Q: when refer to the real GDP growth table, some states had the fastest annual economic growth. Discuss…

A: when refer to the real GDP growth table, some states had the fastest annual economic growth. Discuss…

Q: An island economy produces only bananas and coconuts. The table gives the quantities produced and…

A: Nominal GDP of 2018 = Current year quantity × Current year price=99 × 10 + 54 × 11=990 +…

Q: Computing the cost of goods per basket , what is constant? A. Price of the current year B. Quantity…

A: In the computing of the cost of goods per basket we keep the quantity of the current year is…

Q: c) The production and prices of T-Shirts and Jeans in Fashion Land in 2020 and 2021 are as follows:…

A: Nominal GDP is the sum of product of current year quantities and current year prices. Real GDP is…

Q: (5) GDP grows at 4 percent per year in Afghanistan and at 2 percent per year in Iraq. In 2016, GDP…

A: We are given that, GDP growth in Country A = 4%GDP growth in Country I = 2% In 2016, the GDP for…

Q: 1.2.4 Ifit is predicted that the GDP will increase to 22 000 in 2020, calculate the growth rate…

A: GDP is a macroeconomic measure that is used to determine the total aggregate production in a…

Q: Compute the average annual growth (AAGR) for this economy. (round two decimal points) Ques The…

A: Here we calculate the annual average growth for this economy by using the given information , so the…

Q: Year I Year 2 Quantity Price Quantity Price Oranges Pears 100 $5 150 $5 100 $3 75 $4 a. What is the…

A: GDP is the value of goods and services produced in the domestic territory in the given year. Real…

Q: The data below refers to the output produced and sold in Sustainaland; a hypothetical 2-good nation…

A: Real GDP is the value of the nominal GDP which is adjusted for inflation or rise in prices. Nominal…

Q: Find- A) if the base year in the year 2012 , the real gdp for 2020 equals $ ______and the real GDP…

A: Here we calculate the real GDP of the following years and the annual growth rate by using given…

Q: Suppose that work hours in New Zombie are 300 in year 1, and productivity is $14 per hour worked.…

A: Real GDP = total value of final goods and services domestically produced in a year calculated at…

Q: U.S. real GDP is significantly higher than it was 60 years ago . What does this imply ( if anything…

A: GDP refers to the value of all final goods and services produced in an economy over a given period…

Q: Year Honinal GDP GDP deflator Real GDP Population $1, 000, 000 $1. 050, 000 (2012 dollars) $1, 000,…

A: A country’s nominal GDP measures the GDP at the current prices, unadjusted for inflation. Real GDP,…

Q: . Calculate the Real GDP for 2017. Show your calculation. 2. Did Suniland experience economic growth…

A: 1. Real GDP for 2017 = ( 900x3.50) + (2200x6) + (500x7) = 3150 + 13200 + 3500 = 19850 Hence, Real…

Q: Suppose that 25 yean ago a country had nominai GDP of 1000, a GDP deflator of 200, an opulation of…

A: Gross domestic product (GDP) is the standard measure of the value added created through the…

Q: a. If the GDP deflator is 125 in a country whose real GDP is calculated as 400 billion TL in 2019,…

A: a) According to the question, GDP deflator in year 2019 is 125, real GDP in year 2019=400 billion…

Q: GDP is $5 trillion. Depreciation is $1 trillion. Gross output is $17.25 trillion. What is th…

A: (GDP) is the market value estimation of every single final service and well-produced inside the…

Q: Qx Px Qy Py GDPN GDPr growth inflation 2000 20 50 A 2001 25 60 8. 2002 30 10 80 10 What is the…

A: Nominal GDP: It refers to the value of GDP which is computed on the current year prices of goods and…

Q: 5 Country A produces GDP according to the following equation: GD and has a capital stock of 12,254.…

Q: Assume GDP of a (tiny) country at time zero is equal to $153.00. Calculate GDP 17 years later if the…

A: Let the present value = 153. Rate of growth = 7% = 0.07 T = 17 years

Q: 4) Real GDP in 1998 was 9066.9 Billion, and real GDP in 1999 was 9470.3 Billion. According to the…

A: Real GDP in 1998 = 9066.9 Billion Real GDP in 1999 = 9470.3 Billion

Q: a.Explain in detail, what we could do to avoid each of those 5 factors causing our GDP growth rates…

A: a) The factor that leads to Fall in GDP are as follows:Fall in Aggregate demand: The fall in…

Q: 4.1 If real GDP in a small country in 2017 is $8 billion and real GDP in the same country in 2018 is…

A: GDP or gross domestic product refers to the total value of all goods and services produced in an…

Q: The data below refers to the output produced and sold in Sustainaland; a hypothetical 2-good nation…

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…

Q: In a small economy the real GDP in year 1 is $ 5000 bn and in year 2 it is $ 5500 bn. What is the…

A: The sustained rise in the production of goods and service is called economic growth. The growth…

Q: Level of GDP in year 0 equals 100. In the next four years rate of nominal annual GDP growth is…

A: Year 0 Nominal GDP = 100 Annual Growth Rate = 7% = r Year 1 Nominal GDP = Year 0 GDP x (1+r) = 100 +…

Q: Calculate growth rate of real GDP in 2019 compared to 2009. Show calculations

A: Real GDP measures market value of goods and services using constant set of prices.

Q: Suppose that real GDP was $2265 billion in 2018 and $2285 billion in 2019. Calculate the growth rate…

A: Given:GDP in 2018=$2265GDP in 2019=$2285

Q: ) GDP is a better indicator of economic growth and welfare than GNP because a) indicates income…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: assume the following: Karachi is an autonomous city. The only good/service produced at Karachi is…

A: GDP measures the market value of all goods and services produced in an economy within an given…

Q: c) The production and prices of Sandals and Shoes in Sole Land in 2020 and 2021 are as follows:…

A: Ans. c) Nominal GDP is the value of the product of the current price and quantity of the goods…

Q: The data below refers to the output produced and sold in Sustainaland; a hypothetical 2-good nation…

A: Since, the question you have asked has multiple parts, we will be answering the first three parts…

Q: real GDP per capital change.

A: Nominal GDP is the GDP calculated at current price and output in an economy produced in a year. It…

Q: If a country has a per capita GDP of $3,200 and it grows at a 3.1% annual rate. How long will it…

A: GDP refers to the value of all final goods and services produced in an economy over a given period…

Q: China's economic growth in 2015 is slowest in 25 Years China's growth rate slowed to an annual rate…

A: Answer; Here we will use Rule 70 : Number of years to double = 70/Annual growth rate%…

Q: Suppose that work hours in New Zombie are 200 in year 1 and productivity is $12 per hour worked.…

A: As it is given New zombie work hour =200 ( year) productivity per hour =$ 12

Q: hich statement is NOT true? a. Government expenditure has direct control of a country's economic…

A: Government expenditure is aimed at stabilizing economy and reducing income inequalities. Government…

Q: Using the economic data below, Which statement is true? Year GDP in Billions GDP Growth Rate…

A: Expansion:- Expansion is the period of economic growth in which real GDP expands for more than two…

Q: 2) The GDP of Macrovia in year 1 is A) $4,000,000 B) $5,600,000 C) $6,600,000 D) $5,000,000 3)…

A: Gross domestic product (GDP) is the standard measure of the value added created through the…

Q: If GDP is growing at an annual rate of 6%, in how many years will GDP double?

A: "GDP is the gross domestic product which measures the market value of goods and services produced by…

Q: In 2015, the GDP of US was $2100. Suppose that US has a growth rate of 2.3%. a. What is US GDP after…

A: Given data: In 2015 GDP=$2100 Growth rate, r=2.3%

Q: In 2017, the GDP of UK was $2100. Suppose that UK has a growth rate of 2.3%. a. What is Britain's…

A: The GDP refers to the price value of all final goods and services produced annually in a country.…

Q: Suppose that work hours in New Zombie are 300 in year 1, and productivity is $10 per hour worked.…

A: Real GDP: - it is the inflation-adjusted value of all final goods and services produced in any…

Q: In 2010, the country of Lykesville had a GDP of 41400 and the country of Greatst- GDP of 20700,…

A: The future value of GDP will be calculated here to reach the actual figures of GDP. The growth rate…

Q: Suppose a country's real GDP is $14 trillion and the population is 200 million. Instructions: Enter…

A: Country's real gross domestic product (GDP) is a metric that breaks down a country's economic output…

Q: In 2008, the GDP of France was $7900. Suppose that France has a growth rate of 2%. a. What is…

A: GDP in 2008 = $7,900 Growth Rate = 2% per annum The future value can be calculated by the following…

Q: discuss why do national income and personal income differ, what happened during economics growth

A: Personal income is the total of all actual earnings received by an individual or household during a…

Question

7.
Two countries start with equal GDPS. The economy of Country A grows at an annual rate of 3
percent, whereas the economy of Country B grows at an annual rate of 4 percent. After 25 years how much
larger is Country B's economy than Country A's economyi

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What are typical GDP patterns for a high-income economy like the United States in the long run and the short run?
An economy starts off with a GDP per capita of 5,000. How large will the GDP per capita be if it grows at an annual rate of 2 for 20 years? 2 for 40 years? 4 for 40 years? 6 for 40 years?
In 1980, Denmark had a GDP of 70 billion (measured in U.S. dollars} and a population of 5.1 million. In 2000, Denmark had 3 GDP of 160 billion (measured in U.S. dollars} and a population of 5.3 million. By what percentage did Denmarks GDP per capita rise between 1980 and 2000?
Is it possible for GDP to rise while at the same time per capita GDP is falling? Is it possible for GDP to fall while per capita GDP is rising?
Use an example to explain why, after periods of rapid growth, a low-income country that has not caught up to a high-income country may feel poor.
Would you usually expect GDP as measured by what is demanded to be greater than GDP measured by what is supplied, or the reverse?
Ethiopia has a GDP of 8 billion (measured in U.S. dollars) and a population of 55 million. Costa Rica has a GDP of 9 billion (measured in U.S. dollars) and a population of 4 million. Calculate the per capita GDP for each country and identify which one is higher.
bo Consider the table of GDP and population for several imaginary countries. O Macmillan Learning A Country Wrigleyville Longhornland Dinkytown GDP in millions of U.S. dollars Population in millions 559.0 265.0 2909 101 293.00 1.600 Using this information, please answer the questions. If there is not enough information to answer a question, please enter -11. A. What is the GDP per capita of Longhornland in U.S. dollars? Express your answer rounded to one decimal place. $ GDP per capita in U.S. dollars B. What is the GDP of Dinkytown in millions of U.S. dollars? Express your answer rounded to one decimal place.
GDP is the total market value of goods and services produced ina country in a year. Google the GDP’s of three countries. Everyoneshould use different countries. Use one advanced economy, onedeveloping country, and then a country on a different continentthan the first two countries you found. What I want to know and youneed to share is current (1) total gdp, (2) gdp per capita and (3)gdp growth rate for the last year. Explain what has been happeningin the countries you chose. If you have heritage from anothercountry, share the gdp numbers from your country.
The data below refers to the output produced and sold in Sustainaland; a hypothetical 2-good nation of vegans: Tofu Quinoa Year Price Quantity Price Quantity 2018 $8 300 $3 2000 2019 $9 400 $4 2500 2020 $10 500 $5 3000 (a) Calculate the percentage growth rate in nominal GDP from 2018 to 2019, and 2019 to 2020. (b) Calculate the percentage growth rate in real GDP from 2018 to 2019, and 2019 to 2020, using 2018 as the base year. (c) Calculate the GDP deflator for 2019 and 2020. (d) Using the GDP deflator, calculate the inflation rate in 2020.
4. GDP per capita shows how much gross domestic product each
Consider the table of GDP and population for several imaginary countries. Countrv Wrigleyville Longhornland Dinkvtown GDP in millions of U.S. dollars Population in millions GDP per capita in U.S. dollars 183.0 115 175.00 559.0 2965 1.700 Using this information, please answer the questions. If there is not enough information to answer a question, please enter -11 A. What is the GDP per capita of Longhornland in Ủ.S. dollars? Express your answer rounded to one decimal place. B. What is the GDP of Dinkytown in millions of Ủ.Š. dollars? Express your answer rounded to one decimal place.