Macroeconomics
Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 21, Problem 21APA
To determine

Determine why the growth rate of GDP in current prices does not provide the information about how quickly the economy is really growing.

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Using the table below answer the following questions: Calculate the total value of goods and services at current prices in this economy eachyear?  Calculate the total value of goods and services at constant prices in this economy eachyear? (Note: GDP deflator for 2015 is 100) What is the growth rate of Real GDP between 2016 and 2017?  What was the growth rate of Nominal GDP between 2016 and 2017?  Was the growth rate of real GDP higher or lower that the growth rate of nominalGDP? Explain.  Using 2015 as the base year, calculate the CPI for each year.  Calculate the inflation rate for 2015, 2016 and 2017.  Given the following on a closed economy.C = 40 + 0.8Yd C= consumptionI = 55 – 200r I= InvestmentG = 20 G = government spendingT = 20 T = TaxesYe = 400 Ye = National Incomer = rate of interest Determine the following: 3 marks eachThe equilibrium level of consumptionThe level of investmentThe level of interest rateThe level of Private savingsThe level of Public savingsThe level of…
China’s real GDP increased 6.9 percent in the first quarter of 2017 from a year earlier.Investment grew by 9.2 percent and retail sales by 10.9 percent. In current prices, GDPincreased by 11.8 percent from a year earlier.1. Explain how China’s real GDP can grow at a 6.9 percent rate when consumption andinvestment grew faster than 6.9 percent. 2. Explain why the growth rate of GDP in current prices does not provide informationabout how quickly the economy is really growing.
Malaysia’s GDP to grow 6.3% to 7.5% next year, KUALA LUMPUR (July 7): International agencies have forecast that Malaysia's gross domestic product (GDP) growth in 2021 will be in the range of 6.3% to 7.5%, according to Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.The finance minister said the projections are subject to Malaysia’s continued success in managing Covid-19, as well as in steering and nurturing the economy towards recovery and growth. "As Malaysia is an open economy, whether our growth will be a U-shaped or V-shaped recovery will also depend on external factors, such as the recovery of our major trading partners as well as the restoration of global supply chains," he said in his welcoming address at Invest Malaysia 2020 today. Malaysia recorded only five new Covid-19 cases yesterday, with only 198 active cases and an approximately 98% recovery rate to date. "The rate of infections may have been low in our country, but the public have been constantly reminded…
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