Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 21, Problem 16APA
To determine
Determine the value of GDP in 2016.
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The following table reports 2018 transactions that occurred in the United States. Prices in 2018 and 2016 (base year) are also given.
Use the worksheet to answer questions below. Please make sure to show any formulas you used, calculations and your work.
i. Which of the listed transactions should not be used in U.S. GDP calculation? Please include one reason for each transaction you think should not be included in U.S. GDP calculation.
ii. Based on the transactions you decided to include in U.S. GDP, calculate nominal GDP in 2018.
ii. Based on the transactions you decided to include in U.S. GDP, calculate real GDP in 2018.
iii. Calculate the GDP Deflator in 2018.
Price per
Unit in
Price per Unit Quantity in
Item
2016
in 2018
2018
(Base Year)
Bottles Wine from France
$15
$20
10
Boxes of Cereal produced in Battle Creek, MI
$5
$4
20
Used Tires
$12
$15
5
Shares of Twitter Stock
$8
$10
15
Hours of Swimming Lessons at the Y in
$4
$6
8
Kalamazoo, MI
GDP deflator in 2018 was...
Answer:
Consider the following data on U.S. GDP:
GDP
Year
(Billions of current dollars)
(Billions of 2012 dollars)
2014
17,521.7
16,899.8
2015
18,219.3
17,386.7
2016
18,707.2
17,659.2
2017
19,485.4
18,050.7
2018
20,494.1
18,566.4
Source: "National Economic Accounts."U.S. Bureau of Economic Analysis.
The percentage change in nominal GDP from 2016 to 2017 was
The percentage change in real GDP from 2017 to 2018 was
True or False: The percentage change in real GDP from 2017 to 2018 was higher than the percentage change in real GDP from 2016 to 2017.
O True
O False
Consider the following data on U.S. GDP:
Year (Billions of current dollars) (Billions of 2012 dollars)
2014
17,521.7
16,899.8
18,219.3
17,386.7
18,707.2
17,659.2
19,485.4
18,050.7
20,494.1
18,566.4
2015
2016
2017
2018
GDP
Source: "National Economic Accounts."U.S. Bureau of Economic Analysis.
The percentage change in nominal GDP from 2015 to 2016 was
The percentage change in real GDP from 2015 to 2016 was
True or False: The percentage change in real GDP from 2015 to 2016 was higher than the percentage change in real GDP from 2014 to 2015.
True
False
Chapter 21 Solutions
Macroeconomics
Ch. 21.1 - Prob. 1RQCh. 21.1 - Prob. 2RQCh. 21.1 - Prob. 3RQCh. 21.2 - Prob. 1RQCh. 21.2 - Prob. 2RQCh. 21.2 - Prob. 3RQCh. 21.2 - Prob. 4RQCh. 21.2 - Prob. 5RQCh. 21.3 - Prob. 1RQCh. 21.3 - Prob. 2RQ
Ch. 21.3 - Prob. 3RQCh. 21.3 - Prob. 4RQCh. 21.3 - Prob. 5RQCh. 21 - Prob. 1SPACh. 21 - Prob. 2SPACh. 21 - Prob. 3SPACh. 21 - Prob. 4SPACh. 21 - Prob. 5SPACh. 21 - Prob. 6SPACh. 21 - Prob. 7SPACh. 21 - Prob. 8SPACh. 21 - Prob. 9APACh. 21 - Prob. 10APACh. 21 - Prob. 11APACh. 21 - Prob. 12APACh. 21 - Prob. 13APACh. 21 - Prob. 14APACh. 21 - Prob. 15APACh. 21 - Prob. 16APACh. 21 - Prob. 17APACh. 21 - Prob. 18APACh. 21 - Prob. 19APACh. 21 - Prob. 20APACh. 21 - Prob. 21APACh. 21 - Prob. 22APACh. 21 - Prob. 23APACh. 21 - Prob. 24APACh. 21 - Prob. 25APACh. 21 - Prob. 26APACh. 21 - Prob. 27APACh. 21 - Prob. 28APA
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