2. In 1971, the GDP deflator was 23.94. In 1972, the GDP deflator was 24.98. From thisinformation, we would say that that we had (round answer to the nearest first decimal place... ito the nearest tenth of a percent)O inflation of approximately 4.0%.we had inflation of approximately 4.3O we had economic growth.O we deflation of approximately 1.2%.O we had inflation of approximately 5.1%.

To determine the inflation rate between 1971 and 1972 based on the given GDP deflator values, we…

2. In 1971, the GDP deflator was 23.94. In 1972, the GDP deflator was 24.98. From this information, we would say that that we had (round answer to the nearest first decimal place... to the nearest tenth of a percent) O inflation of approximately 4.0%. we had inflation of approximately 4.3 O we had economic growth. we deflation of approximately 1.2%. O we had inflation of approximately 5.1%.

2. In 1971, the GDP deflator was 23.94. In 1972, the GDP deflator was 24.98. From this information, we would say that that we had (round answer to the nearest first decimal place... to the nearest tenth of a percent) O inflation of approximately 4.0%. we had inflation of approximately 4.3 O we had economic growth. we deflation of approximately 1.2%. O we had inflation of approximately 5.1%.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Table 1 Good Quantity 2017 prices 2018 prices 2019 prices A 10 1.750 KD 2.000 KD 1.750 KD В 20 2.000 KD 2.000 KD 2.000 KD 10 3.000 KD 3.500 KD 4.000 KD Coleulete Sgood A 20 1. 0017 d. Now suppose that the base year is 2019. Recalculate the price index for 2017, 2018, and 2019. e. Using the index with the 2019 base year, calculate the percentage rate of change of the price level from 2018 to 2019 and from 2017 to 2018.
Which of the following does inflation affect? OA. Both the level and the distribution of income. OB. The distribution but not the level of income. O C. The level but not the distribution of income. O D. Neither the level nor the distribution of income.
Consider the following data (all in real Sbns). Year Y. 940 1000 989 1020 1040 1040 1104 1061 1158 1082 9. 1137 1104 7. 1104 1126 Which of the following statements about year 2 is correct? Select one: O a Economy is in a recession. Ob cyclical unemployment is negative Oc capacity utilization is above normal Od u-u Oe ydlical unemployment is positive
Consider a simple economy that only produces: pencils, t-shirts, and bananas. Using the information in the table below, calculate the inflation rate for 2020, as measured by the consumer price index. Quantity Base year price (2010) Product Pencils T-shirts Bananas Price (2019) $3 $7 Price (2020) $3.50 $6.75 $2 15 $5 5 $1 $1.50 $1.75 O 1.9% O 1.1% O -1.1% O 1.5% O -1.9%
2a. a. Define the term Gross Domestic Product (GDP)? What are the two ways tomeasure GDP? b. How is U-3, the standard measure of unemployment calculated? Critics state that this measure understates the true level of unemployment. Why? c. What is the cause of frictional unemployment? And structural unemployment?
Which statement is CORRECT? Any person who can work and is of working age is considered part of the labor force. Core inflation uses a price index to measure inflation by excluding stock and real estate prices in its calculation. The Consumer Price Index is considered the best measure of long-term, underlying inflation. The purchase of flour by a bakery is not counted as GDP. A worker who is retired is considered unemployed. L Moving to the next question prevents changes to this answer. JUL 20 tv O □ A
1
Suppose the base year is 2001. Looking at GDP data from the United States from 2001 to the present, what would be true of the relationship between nominal GOP and real GDP? OA. RGDP NGDP because prices are stable. OB. RGDP NGDP because pridas are falling OD. The relationship is uncertain without more information on prices.
Suppose the GDP deflator was 200 in 2008 and 190 in 2009. In addition, nominal GDP was 1% lower in 2009 than in 2008. Given this information, the approximate. rate of real GDP growth in 2009 was: O 3% 4% O 5% 6%
For many everyday economic applications, when economists adjust nominal dollar figures for inflation, they use the CPI rather than the GDP deflator, because the CPI reflects a , whereas the GDP deflator reflects a. "all" goods and services in GDP; market basket of "all" expenditures by "urban consumers' O b. market basket of "all" expenditures by "urban consumers"; "all" goods and services in GDP Ос. "all" goods and services in GDP; representative market basket of goods and services consumed by typical "urban consumers"; O d. representative market basket of goods and services consumed by typical "urban consumers"; "all" goods and services in GDP Next page
Year Price Deflator Nominal GDP 500 2005 95.4 2006 600 100.0 2007 700 102.5 2008 800 103.1 Refer to the above table. Real GDP in 2005 is 477 O 524.1 O 190.8 O 500
Question 1 If the unemployment rate is 10%, while the number of employed individuals is 900, what is the labor force? A. 810. B. 900 C. 990 D. 1000 Question 2 When an economy experiences INFLATION, which of the following measures of the GDP grows at a faster rate? A. Nominal GDP B. Real GDP C. None of the above, as both, Nominal and Real GDP measures expand at the same rate. Question 3 Consider the following ecnomy: Total Population = 1000 Total Adult Civilian (non-institutionalized) Population = 700 Number of people employed = 200 Number of people without jobs but looking for work = 80 What is the labor force participation rate in this economy? A. 28% B. 40% C. 70% D. None of the above Question 4 A Japanese firm manufactures cars in the US. Assume that each car sells for $20,000 to a consumer in the US. Also assume that from the sale of each car the Japanese manufacturer earns $2000 in profits and remits those to the holding company in Japan. Assume that the car is manufactured with…