Department of statistics of MacroLand computed the following. Assume these 3 goods are the only ones produced/consumed in MacroLand. 2014 Price $4 $3 Vegetables $5 Product Rice Meat Quantity 500 400 200 7- 2015 Price $5 $5 $6 Quantity 550 420 250 2016 Price $7 $6 $8 Quantity 600 450 280 a) Calculate the nominal GDP and the real GDP for MacroLand in 2014, 2015 and 2016, taking 2014 as the base year b) Compute the nominal GDP and the real GDP growth rate for MacroLand in 2015 and 2016. c) Using 2014 as the base year, compute the CPI for 2015 and 2016. Use the CPI to compute the inflation rate between 2014 and 2015, and also between 2015 and 2016.

Department of statistics of MacroLand computed the following. Assume these 3 goods are the only ones produced/consumed in MacroLand. 2014 Price $4 $3 Vegetables $5 Product Rice Meat Quantity 500 400 200 7- 2015 Price $5 $5 $6 Quantity 550 420 250 2016 Price $7 $6 $8 Quantity 600 450 280 a) Calculate the nominal GDP and the real GDP for MacroLand in 2014, 2015 and 2016, taking 2014 as the base year b) Compute the nominal GDP and the real GDP growth rate for MacroLand in 2015 and 2016. c) Using 2014 as the base year, compute the CPI for 2015 and 2016. Use the CPI to compute the inflation rate between 2014 and 2015, and also between 2015 and 2016.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Tracking The U.s. Economy

Section: Chapter Questions

Problem 1.2P

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