Answered: Nominal GDP of a country is $400…

Business

Economics

Nominal GDP of a country is $400 million and Real GDP $200. Calculate the GDP deflator.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: in the year 2019, an economy produces 100 loaves of bread that sell for Rs8 each, in the year 2019,…

A: Gross domestic product (GDP) refers to the total value of all the final goods and services that…

Q: Calculate Nominal GDP if Real GDP is 2700, GDP Deflator is 70 and the price of nutmeg is $10 and…

A: Real GDP can be calculated by using the following formula.

Q: For the country of Madagascar government spending was $15,000 in 2007. Consumption was $88,000,…

A: GDP under expenditure method is computed by adding up following items:1. Consumption expenditure of…

Q: calculate the GDP deflator for 2012 and 2013 as well as the inflation rate for 2012 and 2013 using…

Q: Which of the following would not be counted in the calculation of GDP? Select all that apply. A.…

A: A commonly used economic indicator that estimates the total valuation of all final products produced…

Q: In measuring GDP, which of the following is NOT a factor payment? a. Government's transfers payment…

A: Factor payment approach to calculate GDP includes all factor payments earned by households, that is…

Q: Explain the two approaches that can be used to compute GDP. Why do these two approaches lead to the…

A: Introduction Gross Domestic Product or GDP is referred to as the total monetary value of all the…

Q: Which of the following are included in this year’s GDP? Explain your answer in each Rent received on…

A: GDP: GDP or Gross Domestic Product computes the health of an economy. A country with greater GDP per…

Q: importance of real gdp over nominal gdp

A: GDP: Gross domestic product refers to the total monetary value of goods and services produced in a…

Q: The GDP deflator of the country is 1.5 and it's nominal GDP is 800 million. Calculate the real gdp.

A: Given GDP deflator = 1.5 Nominal GDP = 800 million Real GDP = ?

Q: Which would fall most quickly in a recession with inflation? the GDP deflator nominal GDP real GDP

A: A recession is a situation in which economic activity slows down. Inflation is a situation in which…

Q: Gross Domestic Product If nominal GDP in 2005 was $13095.4 billion and the GDP deflator (price…

A: Nominal GDP in 2005 = $13095.4 billion GDP deflator = 100 Nominal GDP includes both the growth and…

Q: Daniel and Kjell are writing a paper together. Daniel is the PhD supervisor and thus is the first to…

A: The given scenario indicates that both the individuals will try to maximize their utility, given the…

Q: why is competition good for the consumer from an economics perspective

A: We know that firms in a perfectly competitive market produce the socially optimum quantity of output…

Q: In 2016, country A faced unfavorable weather conditions. Wheat production decreased to 450kg.…

A: The gross domestic product (GDP) is the market value of goods and services produced within a year on…

Q: GDP is an important measure of economic activity, telling us about production as well as employment…

A: Gross domestic product (GDP) is the standard measure of the value added created through the…

Q: Why do we need to compute both nominal and real GDP?

A: Nominal GDP refers to the total value of final goods and services produced in an economy during a…

Q: Why does gross domestic product measure the final value of goods and services produced in a country…

A: Final goods are those goods standard measure of the value-added created by the production of goods…

Q: Which of the following is not true for GDP? a. GDP covers outputs made in the past 5 years b. GDP is…

A: Gross Domestic Product Gross Domestic Product refers to the sum of consumption, investment spending,…

Q: Which is better for making comparisons over time, nominal GDP or real GDP, and why?

A: The measure that depicts the final values of production of services and goods within a certain time…

Q: What is GDP? What are the major components of GDP measured by the expenditure method?

A: National income is the sum of all the income earned by individuals and businesses within a country…

Q: In 2003, the economy of Boonton’s nominal GDP was $1300 and its GDP deflator was 200. Calculate…

A: Nominal GDP includes both the growth and prices. Real GDP shows only the growth in the economy. Real…

Q: Why are there two measures of GDP.

A: The gross domestic product (GDP) is that the most commonly used indicator of an economy's size…

Q: The value of GDP deflator is 161.82 and the value of real GDP is $1300 Calculate the value of…

A: The given information is as follows:- GDP deflator = 161.82 Real GDP = $1300 The formula for GDP…

Q: Calculate GDP deflator if real GNP is $47,000 and the nominal GNP is $60,000

A: The data presented in the question above is:- Real GNP = $47,000 Nominal GNP = $60,000 The value of…

Q: Define Gross Domestic Product (GDP) and elaborate its components.

A: Gross Domestic Product is used to gauge the growth status of an economy, it indicates how much…

Q: Find Nominal GDP if GDP deflator is 136 and real GDP is $16,000

A: The data presented in the question above is:- GDP deflator = 136 Real GDP = $16,000 Nominal GDP is…

Q: Year GDP GDP deflator Population 1998 500 100 200 million 1999 800 160 210 million Vhich statement…

A: Gross domestic product(GDP) is the value of all final goods and services produced in an economy over…

Q: Compare and contrast Nominal GDP vs Real GDP

A: Nominal GDP is a macroeconomic evaluation of the production of goods and services focused on the…

Q: Nominal GDP in 1990 was $40,000, and in 2000 it was $35,000. The GDP deflator was 102 in 1990, and…

A: The GDP deflator is a measure of inflation that reflects the price changes of all goods and services…

Q: When we compare the difference between Nominal GDP and Real GDP we note A. Nominal GDP is always…

A: Real GDP is calculated on the basis of base or fixed year while current GDP is calculated on the…

Q: Which of the following is a good or service counted in GDP? Group of answer choices Tires Ford…

A: The entire value of the commodities and services that a country generates over the course of a year…

Q: if the GDP deflator is 125 and the nominal GDP is 130 billion then what is the real GDP

A: Nominal GDP(NGDP) is the GDP at current prices(P). It does not account for changes in the price(P)…

Q: How are nominal and real GDP calculated?

A: Nominal GDP refer to the market value of all final goods and services produced in an economy during…

Q: The economy of Fantasia produces only 2 goods namely Shoes and Computers. The total production and…

A: The gross domestic product implicit price deflator, often known as the GDP deflator, is a metric…

Q: GDP has its importance so list down few prominent countries last five years GDP ratio/rate in the…

A: A way of measuring the welfare of a nation, the GDP(Gross Domestic Product) in a time period is the…

Q: If the GDP deflator is equal to 100, then for that year nominal GDP is equal to real GDP. True or…

A: Nominal GDP is the value of GDP calculated in current price. Real GDP is the value of GDP…

Q: In 1999 in the economy of Microtania, Consumption was $7, Investment was $5, Government spending was…

A: The gross domestic product is the total value of all the final goods and services produced in an…

Q: GDP deflator in 2011 and in 2012 from the preceding year.

Q: Which of the following transactions would NOT be counted in GDP? Select one: a. Nike builds a retail…

A: GDP refers to gross domestic product which is accounted by addition of all the values of final goods…

Q: Define the following i. Gross Domestic Product ii. GDP Deflator iii. National Income iv. Autonomous…

A: A charge for products or services made with money or credit is referred to as an expense.

Question

Nominal GDP of a country is $400 million and Real GDP $200. Calculate the GDP deflator.

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Computation of GDP by the expenditures method would include the purchase of A. fertilizer by a farmer b. government bonds by a commercial bank. c. cement from a construction company d. Land by the U.S department of interior.
Construct the Circular Flow Diagram to show how GDP is calculated. Show the relationship between Product Markets, Firms Factor markets and Households. Label all parts and describe.
In 2001 the Nominal GDP = $120 billion and Real GDP = $135 billion. Calculate the GDP deflator for this economy in 2001.
How is the GDP deflator calculated? A. GDP deflator = Nominal GDP Real GDP x 100 B. GDP deflator = (Nominal GDP + Real GDP) × 100 C) GDP deflator = Real GDP Nominal GDP× 100 D. GDP deflator= (Nominal GDP - Real GDP) × 100
Calculate GDP given the following. Please leave off the dollar sign in your answers. Item Quantity Price Apples 10 $2 Oranges 20 $2 Bananas 30 $1
Which of the following items is not part of the GDP calculation? Select one: a. Local citizens receiving medical care b. A person purchases a local car c. The government expands the highway between two main cities d. A number of unemployed citizens receive unemployment insurance benefit
Which of the following are included in the year’s GDP? which are excluded? Explain your answers Coca-Cola builds a new bottling unit in the United states. Income of a tax accountant working for H&R block. The value of car batteries used in production of electric cars.
Define Gross Domestic Product and Gross National Product (GNP). Explain the difference between Gross Domestic Product and Gross National Product.
A country produces 5 planes and 10 cars. the price of one unit of plane is given by $100 while the price of Car is $1. Calculate the GDP of this country ?
If real GDP for a given year is $2400 and nominal GDP is $2400, what is the GDP Deflator?
Calculate NNP at FC and personal income in the question below. GDP at FC 400 Income from domestic product accruing to private sector 300 Net transfer from government 50 Net indirect taxes 75 NFIA -25 Undistributed profits 20 corporate taxes 15 Consumption of capital 45
What Are some of the shortcomings of the GDP