Using real GDP data without seasonal adjustment, a student said, “The US real GDP declined by 3% in Quarter 1 from Quarter 4 last year. It falls by 3% in just one quarter! It must be a serious recession.” Critically comment on this statement.

Briefly explain whether production of each of the following goods is likely to fluctuate more or less than the real GDP does during the business cycle, and why. Ford F-150 trucks McDonald’s Big Macs Huggies diapers Boeing passenger aircraft

Consider a simple economy that produces two goods: plastic cups and seltzers. The following table shows the prices and quantities of the goods over a three-year period. 2019 2020 Price Quantity Price Quantity Year (Dollars per plastic cup) (Number of plastic cups) (Dollars per seltzer) (Number of seltzers) 2018 2 180 4 210 4 160 Year 2018 2 2 4 2019 2020 Use the information from the preceding table to fill in the following table. Nominal GDP Real GDP (Dollars) (Base year 2018, dollars) GDP Deflator Plastic cups From 2019 to 2020, nominal GDP The inflation rate in 2020 was 295 140 145 and real GDP Seltzers 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 is not influenced by price changes, but nominal GDP is. Real GDP measures the value of the goods and services an economy produces, but nominal GDP measures the value of the goods and services an…

lomework (Ch 33) Due Today at 11:59 PM CDT 1. Key facts about economic fluctuations The following graph approximates business cycles in the United States from the first quarter of 1955 to the third quarter of 1959. The vertical blue bar coincides with periods of 6 or more months of declining real gross domestic product (real GDP). REAL GDP (Billions of dollars) 2800 2700 2600 2500 2400 1955 1956 1957 YEAR 1958 1960 30 ?

GDP and the Measurement of Progress _ Ask FRED The accompanying graph depicts quarterly Real GDP in the United States. Real GDP is measured irn billions of dollars. ALFRED I 17,200 16,800 O 16,400 16,000 o 15,600 15,200 6 14,800 14,400 14,000 13,600 2006 2008 2010 2012 2014 2016 Source: U.S. Bureau of Economic Analysis a. What was the highest level of real GDP prior to the last recession? Enter your answer in billions of dollars and round your answer to one place after the decimal. billion

The following table shows the data for a hypothetical economy in a specific year. All figures are in billions of dollars. Category Value Personal consumption expenditures $80 Purchases of stocks and bonds 30 Net exports -10 Government purchases 30 Sales of secondhand items Gross investment 25 Instructions: Enter your answer as a whole number. What is the country's GDP for the year? billion

In the first quarter of the year, Real GDP was $400 billion; in the second quarter, it was $398 billion; in the third quarter, it was $399 billion; and in the fourth quarter, it was $395 billion. Has there been a recession? Explain your answer.

Suppose that an economy produces two goods: laptops and books. The quantity produced and the prices of these items for 2019 and 2020 are shown in the table below: Year Quantities produced Price ($) Laptops = 60 = 220 Laptops ? Books 2019 Books = 1200 Laptops = 100 Books = ? Laptops = 200 2020 Books 8 = Instructions: Round your answer to two decimal places. a. Let's assume that the base year was 2019, so that real GDP in 2019 equals nominal GDP in 2019. If the real GDP was $18,000 in 2019, the price of books must have been $ Instructions: Round your answer to the nearest whole number. b. Using your answer from part (a), if the growth rate in nominal GDP was 15 percent, have been produced. books must Instructions: Round your answer to one decimal place. c. Using your answers from parts (a) and (b), the growth rate in real GDP between 2019 and 2020 was percent.

What are the three key facts about economic fluctuations? Explain briefly.

A futures market trades contracts on the growth rate for nominal GDP. The contract pays $X to the buyer, where X is 100 times the growth rate in nominal GDP from last year to this year. For example, if nominal GDP grows by 1% over last year, the contract pays $100 (1 x 100). Nominal GDP last year was $28,137 billion. Contracts on the futures markets are currently selling for $460. What is the market's prediction for nominal GDP this year? Put your answer in billions. You may round to two decimal places.