Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Question
Chapter 20, Problem 20.5.3PA
To determine
The percentage decline in the real GDP.
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Students have asked these similar questions
Suppose an economy consumes only two goods: food and entertainment. The following table shows quantities consumed and prices for three years: Year 0 (the base year), Year 1, and Year 2.
QUESTION; compute inflation rates (from year 0 to year 1 and from year 1 to year 2) based on GDP deflator
Item
Year 0
Year 1
Year 2
Quantity (units)
Price
($ / unit)
Quantity (units)
Price
($ / unit)
Quantity (units)
Price
($ / unit)
Food
50
5
75
6
80
4
Entertainment
100
12
110
11
115
14
The accompanying table shows data on nominal GDP (in billions of dollars), real GDP (in billions of 2012 dollars), and population (in thousands) of the United States in 1968, 1978, 1988, 1998, 2008, and 2018. The U.S. price level rose consistently over the period 1968–2018.
Year
Nominal GDP(billions of dollars)
Real GDP(billions of 2012dollars)
Population(thousands)
1968
$941
$4,792
200,745
1978
2,352
6,569
222,629
1988
5,236
8,866
245,061
1998
9,063
12,038
276,154
2008
14,713
15,605
304,543
2018
20,580
18,638
327,436
c. Calculate real GDP per capita for the following years.
Round answers to the nearest dollar.
Real GDP per capita in 1978:________
Real GDP per capita in 1988:________
Real GDP per capita in 2008:________
Real GDP per capita in 2018:________
Examine the following information as reported for the foods below in the years 2010
and 2019.
2010
2019
Item
Price (S)
Quantity
Price (S)
Quantity
Eggs (one dozen)
$2.75
27
$3.37
40
Chicken (500 g)
$3.20
11
$3.57
7
Bread (675 g)
$2.28
18
$2.83
23
a) Compute a simple price index for each of the items, using the year 2010 as the
base year. Enter them in the same order as above: Eggs, Chicken, Bread. Round
answers to 1 decimal.
b) Compute a simple aggregate price index. Use 2010 as the base period. Round to
one decimal place.
c) Compute the Laspeyres price index for 2019 using 2010 as the base year. Round
to one decimal place.
d) Determine a value index for 2019, using 2010 as the base year. Round to one
decimal place.
Chapter 20 Solutions
Economics (7th Edition) (What's New in Economics)
Ch. 20 - Prob. 20.1.1RQCh. 20 - Prob. 20.1.2RQCh. 20 - Prob. 20.1.3RQCh. 20 - Prob. 20.1.4RQCh. 20 - Prob. 20.1.5RQCh. 20 - Prob. 20.1.6RQCh. 20 - Prob. 20.1.7PACh. 20 - Prob. 20.1.8PACh. 20 - Prob. 20.1.9PACh. 20 - Prob. 20.1.10PA
Ch. 20 - Prob. 20.1.11PACh. 20 - Prob. 20.1.12PACh. 20 - Prob. 20.1.13PACh. 20 - Prob. 20.1.14PACh. 20 - Prob. 20.2.1RQCh. 20 - Prob. 20.2.2RQCh. 20 - Prob. 20.2.3RQCh. 20 - Prob. 20.2.4PACh. 20 - Prob. 20.2.5PACh. 20 - Prob. 20.2.6PACh. 20 - Prob. 20.2.7PACh. 20 - Prob. 20.2.8PACh. 20 - Prob. 20.3.1RQCh. 20 - Prob. 20.3.2RQCh. 20 - Prob. 20.3.3RQCh. 20 - Prob. 20.3.4PACh. 20 - Prob. 20.3.5PACh. 20 - Prob. 20.3.6PACh. 20 - Prob. 20.3.7PACh. 20 - Prob. 20.3.8PACh. 20 - Prob. 20.4.1RQCh. 20 - Prob. 20.4.3RQCh. 20 - Prob. 20.4.4PACh. 20 - Prob. 20.4.5PACh. 20 - Prob. 20.4.6PACh. 20 - Prob. 20.4.7PACh. 20 - Prob. 20.4.9PACh. 20 - Prob. 20.4.10PACh. 20 - Prob. 20.5.1RQCh. 20 - Prob. 20.5.2RQCh. 20 - Prob. 20.5.3PACh. 20 - Prob. 20.5.4PACh. 20 - Prob. 20.5.5PACh. 20 - Prob. 20.5.6PACh. 20 - Prob. 20.5.7PACh. 20 - Prob. 20.5.8PACh. 20 - Prob. 20.6.1RQCh. 20 - Prob. 20.6.2RQCh. 20 - Prob. 20.6.3RQCh. 20 - Prob. 20.6.4RQCh. 20 - Prob. 20.6.5PACh. 20 - Prob. 20.6.6PACh. 20 - Prob. 20.6.7PACh. 20 - Prob. 20.6.8PACh. 20 - Prob. 20.6.9PACh. 20 - Prob. 20.7.1RQCh. 20 - Prob. 20.7.3RQCh. 20 - Prob. 20.7.5RQCh. 20 - Prob. 20.7.6PACh. 20 - Prob. 20.7.8PACh. 20 - Prob. 20.7.9PACh. 20 - Prob. 20.1RDECh. 20 - Prob. 20.5RDECh. 20 - Prob. 20.7RDECh. 20 - Prob. 20.10RDECh. 20 - Prob. 20.11RDECh. 20 - Prob. 20.1CTECh. 20 - Prob. 20.2CTE
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