Calculate the total value of goods and services at current prices in this economy each year? Calculate the total value of goods and services at constant prices in this economy each year? (Note: GDP deflator for 2015 is 100) What is the growth rate of Real GDP between 2016 and 2017?
Calculate the total value of goods and services at current prices in this economy each year? Calculate the total value of goods and services at constant prices in this economy each year? (Note: GDP deflator for 2015 is 100) What is the growth rate of Real GDP between 2016 and 2017?
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
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Using the table below answer the following questions:
- Calculate the total value of goods and services at current prices in this economy each
year? - Calculate the total value of goods and services at constant prices in this economy each
year? (Note:GDP deflator for 2015 is 100) - What is the growth rate of Real GDP between 2016 and 2017?
- What was the growth rate of Nominal GDP between 2016 and 2017?
- Was the growth rate of real GDP higher or lower that the growth rate of nominal
GDP? Explain. - Using 2015 as the base year, calculate the
CPI for each year. - Calculate the inflation rate for 2015, 2016 and 2017.
- Given the following on a closed economy.
C = 40 + 0.8Yd C= consumption
I = 55 – 200r I= Investment
G = 20 G = government spending
T = 20 T = Taxes
Ye = 400 Ye = National Income
r = rate of interest
Determine the following: 3 marks each
The equilibrium level of consumption
The level of investment
The level of interest rate
The level of Private savings
The level of Public savings
The level of national savings
Year | Price of T-Shirt | Quantity of T-Shirt | Price of Pajamas | Quantity of Pajamas |
2015 |
10 | 120 | 12 | 200 |
2016 | 12 | 300 | 15 | 200 |
2017 | 14 | 275 | 18 | 180 |
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