Suppose that in 1984 the total output in a single-good economy was 8,000 buckets of chicken. Also suppose that in 1984 each bucket of chicken was priced at $19. Finally, assume that in 2005 the price per bucket of chicken was $26 and that 22,000 buckets were produced. Determine the GDP price index for 1984, using 2005 as the base year. By what percentage did the price level, as measured by this index, rise between 1984 and 2005? What were the amounts of real GDP in 1984 and 2005?
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Suppose that in 1984 the total output in a single-good economy was 8,000 buckets of chicken. Also suppose that in 1984 each bucket of chicken was priced at $19. Finally, assume that in 2005 the price per bucket of chicken was $26 and that 22,000 buckets were produced. Determine the
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- Suppose that in 1984 the total output in a single-good economy was 7,000 buckets of chicken and the price of each bucket of chicken was $10. In 2005 the price per bucket of chicken was $16 and 22,000 buckets were produced.Determine the GDP price index for 1984, using 2005 as the base year.Instructions: Enter your response as an index number rounded to one decimal place.GDP price index = By what percentage did the price level, as measured by this index, rise between 1984 and 2005? %What were the amounts of real GDP in 1984 and 2005?Real GDP in 1984 = $ Real GDP in 2005 = $Suppose the information in the following table is for a simple economy that produces only four goods and services: shoes, hamburgers, shirts, and cotton. Assume that shoes, hamburgers, and shirts are final goods and that all the cotton is used in the production of shirts. Calculate the GDP deflator for 2015. Use 2009 as the base year for the calculations. Provide your answer as a number rounded to two decimal places. Do not include any symbols, such as "$," "=," "%," or "," in your answer.GDP is a good and useful measure of general economic activity for each of the following reasons except for which one? (Which one of the following is not either correct or a reason to rely on GDP as a measure of economic activity?) In order to raise the amount of goods and services available in a country, GDP must rise. In order to have a true measure of economic activity, the income of all people needs to be considered, and the value of goods and services for all people must be considered, and GDP considers the income and spending for all people (in the country). The total value of GDP is lower if the distribution of income is lower and less equitable, and is higher if the distribution is higher and more equitable, and this makes GDP a good indicator of aggregate economic activity. In order to raise the income of some people, and have the income of no people go down, GDP must rise. People care about their income, and GDP is a measure of total income.
- GDP deflator (GDP deflator for year t = nominal GDP for year t divided by the real GDP for year t) is a price index representing the overall price level in the economy. The CPI (the consumer price index) is also a price index representing the overall price level in the economy. Which of the below is best explains why they are different? The GDP deflator does not reflect the prices of exported goods and services, whereas the consumer price index does not reflect the prices of the imported goods and services. The GDP deflator reflects the prices of goods and services bought by producers, whereas the consumer price index reflects the prices of goods and services bought by consumers. The GDP deflator reflects the prices of intermediate goods and services bought by producers, whereas the consumer price index reflects the prices of goods and services bought by consumers.The participation of women in the U.S. labor force has risen dramatically since 1970. How do you this this rise affected GDP? Now imagine a measure of well-being that includes time spent working in the home and taking leisure. How would the change in this measure of well-being compare to the change in GDP? Can you think of other aspects of well-being that are associated with the rise in women’s labor-force participation? Would it be practical to construct a measure of well-being that includes these aspects?The following table contains nominal and real GDP data, in billions of dollars, from the U.S. Bureau of Economic Analysis for 2016 and 2018. The data is listed per quarter, and the real GDP data was calculated using 2009 as the base year. Fill in the columns for the GDP deflator, for the percent increase in the price level, and economic growth rate. (Note: Rounding to three decimal points for GDP deflator and to the nearest tenth for price increase and economic growth rate) Quarter 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 Nominal GDP 18,325.2 18.538.0 18,729.1 18,905.5 19.057.7 19,250.6 19,500.6 19,754.1 20,098.8 percent Increase in Price Level? economic Growth rate? Real GDP 16,571.6 16.663.5 16,778.1 16,851.4 16.903.2 17,031.1 17,163.9 17,286.5 17,457.6 What is the value of the following indicators in the 2017 Q2 for: GDP deflator? percent Increase in Price Level? economic Growth rate? GDP Deflator What is the value of the following indicators in the…
- The following table contains nominal and real GDP data, in billions of dollars, from the U.S. Bureau of Economic Analysis for 2016 and 2018. The data is listed per quarter, and the real GDP data was calculated using 2009 as the base year. Fill in the columns for the GDP deflator, for the percent increase in the price level, and economic growth rate. (Note: Rounding to three decimal points for GDP deflator and to the nearest tenth for price increase and economic growth rate) Quarter 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 Nominal GDP 18,325.2 18,538.0 18,729.1 18,905.5 19,057.7 19,250.6 19,500.6 19,754.1 20,098.8 Real GDP 16,571.6 16,663.5 16,778.1 16,851.4 16,903.2 17,031.1 17,163.9 17,286.5 17.457.6 GDP Deflator What is the value of the following indicators in the 2017 Q2 for: GDP deflator? percent Increase in Price Level? economic Growth rate? Percent Increase in Price Level (%) (rounding to three decimal points) What is the value of the following…Suppose that in 1992 the total output in a single-good economy was 17,461 chickens. Also suppose that in 1992 each chicken was priced at $16. Finally, assume that in 1982 the price per chicken was $8 and that 14,863 were purchased. For each of the following parts, assume that 1982 is the base year. Note: Please round your answers to two decimal places. a) Determine the GDP Deflator for 1992. GDP Deflator b) Determine the percentage growth of real GDP, rose (or fell) between 1982 and 1992. Note: Enter only the magnitude of the growth rate (positive value). Percentage Growth of Real GDP -0% c) Calculate the real GDP for 1982. Real GDP $0 d) Calculate the real GDP for 1992. Real GDP= $OLast year, a small nation with abundant forests cut down $200 worth of trees. It then turned $100 worth of trees into $150 worth of lumber. It used $100 worth of that lumber to produce $250 worth of bookshelves. Assuming the country produces no other outputs, and there are no other inputs used in producing trees, lumber, and bookshelves, what is this nation's GDP? In other words, what is the value of the final goods the nation produced including trees, lumber and bookshelves?
- A country has just one resource - labor - that it can use to produce two goods, books and clothing. At first the country has 10 million workers, and each worker can produce either 2 books or 5 units of clothing per day. Suppose the country wants to produce 8 million books. Suppose the price of a book is $10, and the price of a unit of clothing is $20. Using this information and your answer from the last question, calculate the country's GDP (measured in dollars per day). Enter your answer as a number in the space below. (For example, if your answer is $3.75 million, enter it as 3750000 in the space below.)A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the following amounts: Karaoke Machines CDs Quantity Price Quantity Price (Dollars) (Dollars) 2020 10 20 50 13 2021 15 30 60 15 Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is . (Note: Use 2020 as the base year, and fix the basket at 1 karaoke machine and 5.The participation of women in the Gambian labor force has risen dramatically since 2000. How do you think this rise affected GDP? Now imagine a measure of well-being that includes time spent working in the home and taking leisure. How would the change in this measure of well-being compare to the change in GDP? Can you think of other aspects of well-being that are associated with the rise in women’s labor-force participation? Would it be practical to construct a measure of well-being that includes these aspects?