Foundations of Economics (8th Edition)
Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 21, Problem 8IAPA
To determine

Real GDP in 2016 and 2017.

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Q no: 19 Calculate nominal GDP in 2009 and 2010? Use the following data to work Problems 19 to 20. An economy produces only apples and oranges. The base year is 2009, and the table gives the quantities produced and the prices. Quantities  2009 2010 Apples  60 160 Oranges 80 220 Prices 2009 2010 Apples $0.50 $1.00 Oranges $0.25 $2.00
The economy of Tuland produces only two products shirts and watches. The following information is available for production and prices of Tuland's products for the years 2009 and 2010. 2009 2010 Quantity of shirts Quantity of watches 120 144 60 78 $12.00 $30.00 $13.80 $32.40 Price of shirts Price of watches Using the above information, calculate the following values. (Enter your responses rounded to two decimal places.) GDP for 2009 in 2009's prices GDP for 2009 in 2010's prices GDP for 2010 in 2009's prices GDP for 2010 in 2010's prices Using 2009 as the base year, compute the percentage change in the price level, i.e. the inflation rate. hint: you need to compute the GDP deflator first. % Using 2010 as the base year, compute the percentage change in the price level, i.e. the inflation rate. hint: you need to compute the GDP deflator first. % The geometric average of the two inflation rates % %24 %24 %24 %24
Suppose an economy produces two goods: Apple and Banana. Calculate Nominal GDP and Real GDP by taking 2015 as a base year. Prices and Quantities Quantity of Apple Price of Apple Quantity of Banana Year Price of Banana 2015 $2 100 $3 50 2016 $3 150 $4 100 2017 $4 200 $5 150
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