Essentials of Economics (MindTap Course List)
8th Edition
ISBN: 9781337091992
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 15, Problem 7QR
To determine
The nominal and real
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In the year 2023, the economy produces 100 loaves of bread that sell for $2 each. Calculate the nominal GDP, real GDP, and the GDP deflator for each year. (Use 2023 as the base year.) By what percentage does each of these three statistics rise from one year to the next?
Suppose the information in the following table is for a simple economy that produces only four goods and services: shoes, hamburgers, shirts, and cotton. Assume that shoes, hamburgers, and shirts are final goods and that all the cotton is used in the production of shirts. Calculate the GDP deflator for 2015. Use 2009 as the base year for the calculations. Provide your answer as a number rounded to two decimal places. Do not include any symbols, such as "$," "=," "%," or "," in your answer.
Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 3 bars and the price is $4. In year 2, the quantity produced is 4 bars and the price is $5. In year 3, the quantity produced is 5 bars and the price is $6. Year 1 is the base year.What is nominal GDP for each of these three years?What is real GDP for each of these years?What is the GDP deflator for each of these years?What is the percentage growth rate of real GDP from year 2 to year 3?What is the inflation rate as measured by the GDP deflator from year 2 to year 3?
Chapter 15 Solutions
Essentials of Economics (MindTap Course List)
Ch. 15.1 - Prob. 1QQCh. 15.2 - Prob. 2QQCh. 15.3 - Prob. 3QQCh. 15.4 - Prob. 4QQCh. 15.5 - Prob. 5QQCh. 15 - Prob. 1CQQCh. 15 - Prob. 2CQQCh. 15 - Prob. 3CQQCh. 15 - Prob. 4CQQCh. 15 - Prob. 5CQQ
Ch. 15 - Prob. 6CQQCh. 15 - Prob. 1QRCh. 15 - Prob. 2QRCh. 15 - Prob. 3QRCh. 15 - Prob. 4QRCh. 15 - Prob. 5QRCh. 15 - Prob. 6QRCh. 15 - Prob. 7QRCh. 15 - Prob. 8QRCh. 15 - Prob. 1PACh. 15 - Prob. 2PACh. 15 - Prob. 3PACh. 15 - Prob. 4PACh. 15 - Prob. 5PACh. 15 - Prob. 6PACh. 15 - Prob. 7PACh. 15 - Prob. 9PACh. 15 - Prob. 10PACh. 15 - Prob. 11PACh. 15 - Prob. 12PA
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- Table 23-2 A country produces only ice cream and cake in the quantities and prices listed below. Use 2011 as the base year. 6. Refer to Table 23-2. Calculate real and nominal GDP for the year 2012. 7. Refer to Table 23-2. Calculate real and nominal GDP for the year 2013. 8. Refer to Table 23-2. Calculate the GDP deflator for 2012 and 2013.arrow_forwardA simple economy produces four goods, pumpkins, pumpkin pies, cell phones, and video games. All of the production of pumpkins is used in the production of pumpkin pies. Use the information in the following table to compute GDP for the current year. Product pumpkins Quantity 100 Price Per Unit $0.25 pumpkin pies 200 $1.00 cell phones 900 $700.00 video games 1800 $10.00 In this year, the nominal value of GDP in this economy is $arrow_forwardin the year 2019, an economy produces 100 loaves of bread that sell for Rs8 each, in the year 2019, the economy produces 200 loaves of bread taht sell for Rs10 each. calculate nominal GDP, and real GDP, and the GDPM deflator for each year. (use 2020 as a base year).arrow_forward
- In the year 2023, the economy produces 100 loaves of bread that sell for $2 each. Calculate the nominal GDP, real GDP, and the GDP deflator for each year. (Use 2023 as the base year.) By what percentage does each of these three statistics rise from one year to the next?arrow_forwardConsider an economy that produces only chocolate bars. In year 1, the quantity produced is 10 bars and the price is Rs.400 per bar. In year 2, the quantity produced is 12 bars and the price is Rs.500 per bar. In year 3, the quantity produced is 15 bars and the price is Rs.600 per bar. Year 1 is the base year. What is the GDP deflator for year 2? What is the GDP deflator for year 3? What is the percentage growth rate of real GDP from year 2 to year 3?arrow_forwardThe nominal GDP for 2016 was $17,500 and the real GDP was $13,000 Calculate GDP deflatorarrow_forward
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