Table 2-1 Good Rulers Pens Pencils Quantity (2020) Price (2020) 1 000 R3.00 2 000 R5.00 600 R6.00 500 Q.2.1.1 Calculate the Nominal GDP for 2020. Show your calculation. Q.2.1.2 Calculate the Nominal GDP for 2021. Show your calculation. Q.2.1.3 Calculate the Real GDP for 2021. Show your calculation. Q.2.1.4 Did Abanaman Republic experience economic growth in 2021? Show your calculations. Quantity (2021) 900 2 200 Price (2021) R3.50 R6.00 R7.00

Core chapter 1.2 will help with this question. Do not include the dollar sign in your answer. Fruitland has a very simple economy: it produces just apples and oranges. It has no imports and exports Apples Oranges 100 Quantity in year 1 Price in year 1 Quantity in year 2 Price in year 2 50 $1.00 $0.80 80 120 $1.25 $1.60 Using the table above, what was Fruitland's nominal GDP in year 1? Answer:

(Japan: stages in the production and sale of a TV) Stage Components manufacture Assembly Wholesaler Retailer Price $120 $200 $400 $450 7. If Japan produces one TV, John argues Japan's GDP is equal to the sum of all prices. Briefly explain (in one or two paragraphs) why the argument is correct or incorrect. 8. How much value does the Assembly sector create? 9. If Japan produces one TV, how much is its GDP? Why? ULATE

Question 1 Use Table 1 to calculate the following (show your calculations): 1. GDE for 2015. 2. GDE for 2016. 3. GDP for 2020. 4. GDE growth for 2016 5. GDP growth for 2020 Table 1: Expenditure on GDP (constant 2010 prices, R million) Final consumption expenditure Gross capital formation Imports of goods and services Exports of Gross fixed Change in goods and services General Year Households capital Government inventories formation 2015 1853657 614957 634540 20917 909345 966025 2016 1864436 628434 612111 -9653 912546 928730 2017 1902851 629712 618516 3189 905898 937740 2018 1937396 641512 609614 -5440 929792 968651 2019 1957656 651103 603928 -9130 906445 963940 2020 1851300 654482 498530 -89797 813265 803784 Source: StatsSA (2021) Question 2 2.1 Use the 2020 information provided in the table and show the determination of the value of total expenditure and of income using the 45-degree model. 2.2 With following values, c 0,7, t 0,41 and m 0,86 use the multiplier and calculate the…

Consider a simple economy that produces two goods: plastic cups and donuts. The following table shows the prices and quantities of the goods over a three-year period. Plastic cups Donuts Price Quantity Price Quantity Year (Dollars per plastic cup) (Number of plastic cups) (Dollars per donut) (Number of donuts) 2018 2 215 3 155 2019 4. 135 3 210 2020 2 150 3 190 Use the information from the preceding table to fill in the following table. Nominal GDP (Dollars) Real GDP (Base year 2018, dollars) GDP Deflator Year 2018 2019 2020 From 2019 to 2020, nominal GDP and real GDP The inflation rate in 2020 was

2018 2022 2018 2022 Table 1: Prices and Quantities in 2018 and 2022 Quantity of Corns 10 20 Price of Corns RM 10 RM 12 Quantity of Corns 10 20 Quantity of Carrots Using data from Table 1 above and assuming that 2018 is the base year, find real GDP for the year 2022 and 2018. 15 30 Table 1: Prices and Quantities in 2018 and 2022 Using data from Table 1 above and assuming that 2018 is the base year, find real GDP for the year 2022 and 2018. Price of Corns RM 10 RM 12 Price of Carrots RM 5 RM 6 Quantity of Carrots 15 30 Price of Carrots RM 5 RM 6

Problems and applications Q9