Suppose an economy produces two products: meat pies and MP3S. In 2011, 20 meat pies are sold at $5 each, and eight MP3S are sold at $50 each. In 2010, the base year, the price of meat pies was $10 each, and the price of MP3S was $75 each. Therefore:

Consider a simple economy that produces two goods: pencils and muffins. The following table shows the prices and quantities of the goods over a three-year period. Year Pencils Muffins Price Quantity Price Quantity (Dollars per pencil) (Number of pencils) (Dollars per muffin) (Number of muffins) 2018 1 140 2 200 2019 2 125 4 220 2020 3 120 4 180   Use the information from the preceding table to fill in the following table. Year Nominal GDP Real GDP GDP Deflator (Dollars) (Base year 2018, dollars) 2018       2019       2020         From 2019 to 2020, nominal GDP    , and real GDP    .   The inflation rate in 2020 was    .   Why is real GDP a more accurate measure of an economy's production than nominal GDP? Nominal GDP is adjusted for the effects of inflation or deflation, whereas real GDP is not.   Real GDP measures the value of the goods and services an economy produces,…

Imagine that a hypothetical economy produces three items food, clothes and Aluminum and a typical consumer buys food and clothing only. The table below shows the hypothetical results.

Suppose that in the nation state of Craiglandia there are 2 final goods produced in the economy – food and clothing. Suppose the economy produces 10 units of food and 5 units of clothing in 2000 (the base year), and 10 units of food and 10 units of clothing in 2015. Further suppose the price of food was $2.00 per unit in 2000, and $3.00 per unit in 2015; whereas the price of clothing was $2.00 in 2000 and $2.00 in year 2015. What was the nominal GDP for Craiglandia in 2015? What was the real GDP for Craiglandia in 2015? The GDP deflator for Craiglandia, for 2015, is _______; and it follows that Craiglandia experienced _______between 2000 and 2015.

Assume an economy in which only apple and orange are produced. In year 1, 200 million killograms of apple are produced and consumed and its price is $0.6 per kilogram, while 150 million killograms of orange are produced and consumed and its price is $0.7 per killogram. In year 2, 250 million kilograms of apple are produced and consumed and its price is $0.7 per kilogram, while 300 million kilograms of orange are prduced and its price is $0.8 per kilogram. (Show the results upto 1 decimal point when required) (a) If the base year is year 1 then the GDP price deflator in year 2 is (b) If the base year is year 2 then the GDP price deflator in year 1 is (c) If the base year is year 1 then the inflation rate between years 1 and 2 is (d) If the base year is year 2 then the inflation rate between years 1 and 2 is (e) The chain weighted inflation rate between year 1 and year 2 is % (f) If the base year is year 1 then CPI inflation rate is % % %

4. GDP and Related Measures Suppose an economy produces only 2 products that will also be used for direct consumption, as per the article at the end of the exam: chicken wings and donuts. In the second quarter of 2021 (the base period), 180,000 pounds of chicken wings were produced, at a value of $3.50 per pound, while in the second quarter of 2022, production of chicken wings increased to 200,000 pounds, at a value of $3.75 per pound. In the second quarter of 2021 (the base period), 85,000 donuts were produced at a value of $0.85 per donut, while in the second quarter of 2022, donut production increased to 100,000 donuts, each at a value of $0.95 per donut. The population in this economy is 1000 individuals in 2022, while the number of hours worked in 2022 is 5000. Also, the quantities that were produced in 2021 represent the quantities that were purchased by the typical household, meaning that everything that was produced was sold. a. Solve for real GDP in the second quarter of 2021.…

economics

Consider an economy producing the following products: bread and cars. Use the information provided in the following table to answer the question below:   Product     Quantity Base Year Price   (2012) Price   (2019)      Price    (2020)      Bread 1000 $20.00 $22 $24 Cars 2000 $8.00 $10 $12     Refer to the table above to answer the questions below: a) Compute the consumer Price Index for years 2019 and 2020 using 2012 as the base year and the consumption basket that consist of 1000 bread and 2000 cars. You will need to round your answer to the nearest whole number. b) Compute the Inflation rate for 2020

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To answer Questions #1 through #4 use the following information: Suppose that in the nation state of Raleighville there are 2 final goods produced in the economy - dog food and kitten chow. Suppose the economy produces 15 units of dog food and 5 units of kitten chow in 2000 (the base year), and 20 units of dog food and 10 units of kitten chow in 2020. Further suppose the price of dog food was $1.00 per unit in 2000, and $3.00 per unit in 2020; whereas the price of kitten chow was $1.00 in 2000 and $2.50 in 2020. What was the real GDP for Raleighville in 2020? Oa. $20.00 O b. $30.00 Oc. $57.50 Od. $85.00 Next page page