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c) Calculate the nominal GDP for each year? What is the percentage change in nominal GDP from 2005 to 2006 and from 2006 to 2007? Year 2005 2006 2007 Nominal GDP Nominal GDP Rate of Change $10,030 $11,792 $14,191 Year 2005 2006 2007 d) Calculate the real GDP using 2005 prices for each of the three years. What is the percentage change in real GDP from 2005 to 2006 and from 2006 to 2007? Real GDP Real GDP Rate of Change $10,030 $10,530 $11,945 17.6% 20.3% e) Using the year 2005 as the base year, compute the following statistics for each year. Com- pare the answers and explain the difference. The Implicit Price Deflator for GDP (Paasche Index) and Inflation - Assume consumer basket is composed of quantities in year 2005, calculate the fixed weight price index such as CPI (Laspeyres Index) and Inflation. $10,030 $11,792 $14,191 5% 13.4% Year Nominal GDP Real GDP GDP Deflator Inflation % 2005 2006 2007 $10,030 $10,530 $11,945 $15 $16 $17 100.000 111.984 118.802 - Assume consumer basket is composed of quantities in year 2005, calculate the fixed weight price index such as CPI (Laspeyres Index) and Inflation. Computers 2005 DVD 2005 Pizza 2005 Year Price Qty Price Qty Price 2005 $900 100 2006 $1,000 10 $10 10 $12 100 10 $14 100 2007 $1,050 11.98 6.09 Qty 2 2 2 Basket Cost CPI Inflation% $10,030 $11,232 111.984 100.000 $11,934 118.983 า 11.98 6.25

c) Calculate the nominal GDP for each year? What is the percentage change in nominal GDP from 2005 to 2006 and from 2006 to 2007? Year 2005 2006 2007 Nominal GDP Nominal GDP Rate of Change $10,030 $11,792 $14,191 Year 2005 2006 2007 d) Calculate the real GDP using 2005 prices for each of the three years. What is the percentage change in real GDP from 2005 to 2006 and from 2006 to 2007? Real GDP Real GDP Rate of Change $10,030 $10,530 $11,945 17.6% 20.3% e) Using the year 2005 as the base year, compute the following statistics for each year. Com- pare the answers and explain the difference. The Implicit Price Deflator for GDP (Paasche Index) and Inflation - Assume consumer basket is composed of quantities in year 2005, calculate the fixed weight price index such as CPI (Laspeyres Index) and Inflation. $10,030 $11,792 $14,191 5% 13.4% Year Nominal GDP Real GDP GDP Deflator Inflation % 2005 2006 2007 $10,030 $10,530 $11,945 $15 $16 $17 100.000 111.984 118.802 - Assume consumer basket is composed of quantities in year 2005, calculate the fixed weight price index such as CPI (Laspeyres Index) and Inflation. Computers 2005 DVD 2005 Pizza 2005 Year Price Qty Price Qty Price 2005 $900 100 2006 $1,000 10 $10 10 $12 100 10 $14 100 2007 $1,050 11.98 6.09 Qty 2 2 2 Basket Cost CPI Inflation% $10,030 $11,232 111.984 100.000 $11,934 118.983 า 11.98 6.25

Economics:
Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter1A: Appendix: Working With Graphs
Section: Chapter Questions
Problem 1E
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My question is (e), could u tell me how to get the value of CPI in the given form please? I upload the previous questions as ur reference, maybe u will use the result based on them. Thank u:)
c) Calculate the nominal GDP for each year? What is the percentage change in nominal GDP from 2005 to 2006 and from 2006 to 2007? Year 2005 2006 2007 d) Calculate the real GDP using 2005 prices for each of the three years. What is the percentage change in real GDP from 2005 2006 and from 2006 to 2007? Year 2005 2006 2007 Nominal GDP Nominal GDP Rate of Change $10,030 $11,792 $14,191 Year 2005 Real GDP Real GDP Rate of Change $10,030 $10,530 $11,945 e) Using the year 2005 as the base year, compute the following statistics for each year. Com- pare the answers and explain the difference. 17.6% 20.3% Year Nominal GDP Real GDP 2005 2006 2007 The Implicit Price Deflator for GDP (Paasche Index) and Inflation Assume consumer basket is composed of quantities in year 2005, calculate the fixed weight price index such as CPI (Laspeyres Index) and Inflation. 10 $10,030 $11,792 $14,191 5% 13.4% $10,030 $10,530 $11,945 GDP Deflator Inflation % 100.000 111.984 118.802 - Assume consumer basket is composed of quantities in year 2005, calculate the fixed weight price index such as CPI (Laspeyres Index) and Inflation. Computers 2005 DVD 2005 Pizza 2005 Price $900 10 Qty Price Qty Price Qty $10 100 $15 $12 100 $16 $14 100 $17 2006 $1,000 2 2 2 2007 $1,050 11.98 6.09 Basket Cost CPI $10,030 100.000 $11,232 111.984 $11,934 118.983 Inflation% า 11.98 6.25
Transcribed Image Text:c) Calculate the nominal GDP for each year? What is the percentage change in nominal GDP from 2005 to 2006 and from 2006 to 2007? Year 2005 2006 2007 d) Calculate the real GDP using 2005 prices for each of the three years. What is the percentage change in real GDP from 2005 2006 and from 2006 to 2007? Year 2005 2006 2007 Nominal GDP Nominal GDP Rate of Change $10,030 $11,792 $14,191 Year 2005 Real GDP Real GDP Rate of Change $10,030 $10,530 $11,945 e) Using the year 2005 as the base year, compute the following statistics for each year. Com- pare the answers and explain the difference. 17.6% 20.3% Year Nominal GDP Real GDP 2005 2006 2007 The Implicit Price Deflator for GDP (Paasche Index) and Inflation Assume consumer basket is composed of quantities in year 2005, calculate the fixed weight price index such as CPI (Laspeyres Index) and Inflation. 10 $10,030 $11,792 $14,191 5% 13.4% $10,030 $10,530 $11,945 GDP Deflator Inflation % 100.000 111.984 118.802 - Assume consumer basket is composed of quantities in year 2005, calculate the fixed weight price index such as CPI (Laspeyres Index) and Inflation. Computers 2005 DVD 2005 Pizza 2005 Price $900 10 Qty Price Qty Price Qty $10 100 $15 $12 100 $16 $14 100 $17 2006 $1,000 2 2 2 2007 $1,050 11.98 6.09 Basket Cost CPI $10,030 100.000 $11,232 111.984 $11,934 118.983 Inflation% า 11.98 6.25
*** **QUESTION - 6 - The country of Warwickia produces and consumes three products: Computers, T-shirts and Pizza. The table provided gives information on the prices and production of these three goods for the years 2005, 2006, and 2007. (As a suggestion, it is recommended to use an Excel spreadsheet for any calculations needed) 2006 $1000 2007 $1050 Computers Years. Prices Quantity Prices Quantity Prices 2005 $900 10 $10 100 $15 10.5 $12 105 $16 12 $14 110 $17 (10.5-10) 10 Computers: 5.0% (equal to - T-shirts: 5.0% (equal to (105-100) 100 - Pizza: 0% (equal to (²-2) × 100) T-shirts a) What is the per cent change in production of each of the goods from 2005 to 2006, 2006 to 2007? - From 2005 to 2006, the per cent change in the production of x 100) x 100) Computers: 5.0% (equal to - T-shirts: 16.7% (equal to - Pizza: 6.25% (equal to - From 2006 to 2007, the per cent change in the production of Computers: 14.3% (equal to 12-10.5 10.5 x 100) - T-shirts: 4.8% (equal to 110-105 x 100) 105 - Pizza: 50.0% (equal to ³-² × 100) ($1,000-$900) $900 Computers: 11.1% (equal to - T-shirts: 20.0% (equal to ($12-$10) x 100) $10 - Pizza: 6.7% (equal to ($16-$15) $15 x 100) - From 2006 to 2007, the per cent change in the price of ($1,050-$1,000) $1,000 x 100) x 100) b) What is the per cent change in prices of each of the goods from 2005 to 2006, 2006 to 2007? - From 2005 to 2006, the per cent change in the price of ($14-$12) $12 ($17-$16) $16 Pizza x 100) 12 Quantity 2 2 3 x 100)
Transcribed Image Text:*** **QUESTION - 6 - The country of Warwickia produces and consumes three products: Computers, T-shirts and Pizza. The table provided gives information on the prices and production of these three goods for the years 2005, 2006, and 2007. (As a suggestion, it is recommended to use an Excel spreadsheet for any calculations needed) 2006 $1000 2007 $1050 Computers Years. Prices Quantity Prices Quantity Prices 2005 $900 10 $10 100 $15 10.5 $12 105 $16 12 $14 110 $17 (10.5-10) 10 Computers: 5.0% (equal to - T-shirts: 5.0% (equal to (105-100) 100 - Pizza: 0% (equal to (²-2) × 100) T-shirts a) What is the per cent change in production of each of the goods from 2005 to 2006, 2006 to 2007? - From 2005 to 2006, the per cent change in the production of x 100) x 100) Computers: 5.0% (equal to - T-shirts: 16.7% (equal to - Pizza: 6.25% (equal to - From 2006 to 2007, the per cent change in the production of Computers: 14.3% (equal to 12-10.5 10.5 x 100) - T-shirts: 4.8% (equal to 110-105 x 100) 105 - Pizza: 50.0% (equal to ³-² × 100) ($1,000-$900) $900 Computers: 11.1% (equal to - T-shirts: 20.0% (equal to ($12-$10) x 100) $10 - Pizza: 6.7% (equal to ($16-$15) $15 x 100) - From 2006 to 2007, the per cent change in the price of ($1,050-$1,000) $1,000 x 100) x 100) b) What is the per cent change in prices of each of the goods from 2005 to 2006, 2006 to 2007? - From 2005 to 2006, the per cent change in the price of ($14-$12) $12 ($17-$16) $16 Pizza x 100) 12 Quantity 2 2 3 x 100)
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