Question 3/Chapter 6 Fill in the blanks in the following table of GDP statistics: Nominal GDP     2014/17,522         2016/18,707 Real GDP            2014/16,900            2015/17,387 GDP deflator      2016/205.9

4.

Consider a simple economy that produces two goods: beers and donuts. The following table shows the prices and quantities of the goods over a three-year period. Beers   Donuts Price Quantity Price Quantity (Dollars per beer) (Number of beers) (Dollars per donut) (Number of donuts) 2 245 2 180   4 130 2 195   2 115 2 155     Use the information from the preceding table to fill in the following table. Year Nominal GDP Real GDP (Base Year 2016, dollars) GDP Deflator (Dollars)   2016       2017       2018         From 2017 to 2018, nominal GDP ________________, and real GDP __________    .   The inflation rate in 2018 was  ___________.

The table below presents a brief summary of City A’s total spending, local GDP, and population changes. Read the table and answer the following questions.                   2010 2020 Total spending ($ million) 89 104.12 Local GDP ($ millions) 110 134 Population 50,000 56,275 CPI deflators (2012=1) 0.96 1.05   Calculate % change for City A’s total spending from 2010 to 2020 in current dollars. *Results round to the nearest 2 decimal places.  Calculate % change for City A’s total spending from 2010 to 2020 in constant dollars. *Results round to the nearest 2 decimal places.  Why does % change calculated from constant dollars differ from % change calculated from current dollar? Calculate per capita spending in 2010 and 2020, respectively, using constant dollars. *Results round to the nearest dollar.  2010 per capita spending: 2020 per capita spending: Calculate the compound annual growth rate of per capita spending from 2010 to 2020…