1 and period tt, nominal GDP grows by 5% and the GDP deflator grows by 3%. By how much does real GDP change? Explain how you arrived at your answer. Between period tt -
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- Nominal GDP in Nowhereland in 2018 and 2019 is as follows: Can you say that the production of goods and services in Nowhereland has increased between 2018 and 2019? Why or why not?U.S. macroeconomic data are among the best in the world. Given what you learned in the Clear It Up 'How do statisticians measure GDP?', does this surprise you, or does this simply reflect the complexity of a modern economy?using the table below giving the quantity and price of goods producedin an economy in two periods in suitable units, assuming that there are only three goodsproduced in the economy. Consider the economy described above a) What is nominal GDP in 2003 and in 2004? By what percentage does nominalGDP change from 2003 to 2004?b) Using the prices for 2003 as the set of common prices, what is real GDP in 2003and in 2004? By what percentage does real GDP change from 2003 to 2004?c) Using the prices for 2004 as the set of common prices, what is real GDP in 2003and in 2004? By what percentage does real GDP change from 2003 to 2004?d) Why are the two output growth rates constructed in (b) and (c) different? Whichone is correct? Explain your answer.
- C I G NX Price Yr1 1000 156 560 52 4 Yr2 1300 159 600 52 5 Yr3 2000 169 690 53 6 Yr4 2900 180 880 53 7 -What will the percent rate of change in real GDP be from year 1 to year 2, from year 2 to year 3, and from year 3 to year 4. (round to the whole number for all calculations and final answers) -State how long it will take for real GDP to double in size.The BEA says “Real gross domestic product (GDP) increased at an annual rate of 2.9 percent in the fourth quarter of 2022”. Your friend has gone to FRED and pulled up the numbers FRED gives for the “Percent Change” and the “Percent Change from Year Ago” in real GDP for the 4th quarter of 2022. It turns out (you can verify this) that neither of those numbers is consistent with what the BEA says real GDP increased by. So your friend is very puzzled. Write one paragraph in your essay that helps your reader clearly understand what this 2.9 percent number really means, using the FRED numbers for context.Product Movies Burgers Bikes 2017 Quantity 20 100 3 Price $6.00 2.00 1,000.00 2020 Quantity 30 90 6 Price $7.00 2.50 1,100.00 A very simple economy produces three goods: movies, burgers, and bikes. The quantities produced and their corresponding prices for 2017 and 2020 are shown in the table. What is real GDP in 2020, using 2017 as the base year? OA. $3,320 B. $3,690 OC. $6,360 D. $7,035 hot 47 PM hot 36 PM hot 52 PM
- Suppose there is a very small country called Micro-opolis. It makes only two goods: cell phones and pears. Their prices and quantities are the following: Price of Number of Price of Number of Pears Pears Phones Phones 2019 $2 100 $200 100 2020 $2.50 110 $225 110 2021 $3 120 $250 120 If 2019 is the base year, what is the growth in real GDP from 2020 to 2021? A. 9.1% B. 31.8% C. 35% D. 45%Answer the part d,e and f... Thank you.. Suppose that nominal GDP was $9500000.00 in 2005 in Fairfax County Virginia. In 2015, nominal GDP was $11000000.00 in Fairfax County Virginia. The price level rose 2.00% between 2005 and 2015, and population growth was 3.25%. Calculate the following figures for Fairfax County Virginia between 2005 and 2015. Give all answers to two decimals. a. Nominal GDP growth was _______ %. b. Economic growth was ________ %. c. Inflation was ______%. d. Real GDP growth was ________%. e. Per capita GDP growth was _______%. f. Real per capita GDP growth was ________%.Finally, type the following problem and then show all work in answering the problem's questions: 1. Given an economy consists of five goods: clothing, shelter, transportation, food, and entertainment. Their prices for the year 2020 were$200,$1,000,$500,$800, and$400, respectively and the quantities purchased for the five goods were10,12,3,12, and 1 , respectively. If 2020 is the base year, what were the inflation or deflation rates for 2021 and 2022 if in 2021 the prices for the five goods were$300,$900,$600,$900, and$300, respectively and in 2022 thelprices for the five goods were$400,$1000,$400,$1000, and$200, respectively.
- So far, we have learned to measure real GDP, but how do we end up with that real GDP? Of all of the different amountsof national income and price levels that might exist, how do we gravitate toward the one that gets measured each year asreal GDP?In short, it is the interaction of the buyers and producers of all output that determines both the national income (real GDP)and the price level. In other words, the intersection of aggregate demand (AD) and short-run aggregate supply (SRAS)determines the short-run equilibrium output and price level.Once we have a short-run equilibrium output, we can then compare it to the full employment output to figure out where inthe business cycle we are. If current real GDP is less than full employment output, an economy is in a recession. If currentreal GDP is higher than full employment output, an economy is experiencing a boom. If the current output is equal to thefull-employment output, then we say that the economy is in long-run equilibrium. The…Suppose that the real GDP of a country was $90 billion in the first quarter of 2021 and $100 billion in the second quarter of 2021, the BEA reported that the U.S. economy grew % when annualized?Which of the following would cause real GDP to exceed nominal GDP? * a large increase in aggregate output a large decrease in aggregate output a significant decrease in prices an increase in population O using the value-added approach to calculate GDP