Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 21, Problem 8IAPA
To determine
Real GDP in 2016 and 2017.
Expert Solution & Answer
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Check out a sample textbook solutionStudents have asked these similar questions
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
Chapter 21 Solutions
Foundations of Economics (8th Edition)
Ch. 21.A - Prob. 1SPPCh. 21.A - Prob. 2SPPCh. 21.A - Prob. 3SPPCh. 21.A - Prob. 4SPPCh. 21.A - Prob. 5SPPCh. 21.A - Prob. 6SPPCh. 21.A - Prob. 7SPPCh. 21.A - Prob. 1IAPCh. 21.A - Prob. 2IAPCh. 21.A - Prob. 3IAP
Ch. 21.A - Prob. 4IAPCh. 21.A - Prob. 5IAPCh. 21.A - Prob. 6IAPCh. 21.A - Prob. 7IAPCh. 21 - Prob. 1SPPACh. 21 - Prob. 2SPPACh. 21 - Prob. 3SPPACh. 21 - Prob. 4SPPACh. 21 - Prob. 5SPPACh. 21 - Prob. 6SPPACh. 21 - Prob. 7SPPACh. 21 - Prob. 8SPPACh. 21 - Prob. 9SPPACh. 21 - Prob. 10SPPACh. 21 - Prob. 1IAPACh. 21 - Prob. 2IAPACh. 21 - Prob. 3IAPACh. 21 - Prob. 4IAPACh. 21 - Prob. 5IAPACh. 21 - Prob. 6IAPACh. 21 - Prob. 7IAPACh. 21 - Prob. 8IAPACh. 21 - Prob. 9IAPACh. 21 - Prob. 10IAPACh. 21 - Prob. 11IAPACh. 21 - Prob. 12IAPACh. 21 - Prob. 1MCQCh. 21 - Prob. 2MCQCh. 21 - Prob. 3MCQCh. 21 - Prob. 4MCQCh. 21 - Prob. 5MCQCh. 21 - Prob. 6MCQCh. 21 - Prob. 7MCQ
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Similar questions
- Q no: 20 Calculate real GDP in 2009 and 2010 expressed? Use the following data to work question 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 $2.00arrow_forwardSizing Up the Economy Using GDP – Work It Out The table displays price and quantity information for two vehicle models produced by Ford Motor Company, the F-series trucks and Escape SUVS. 2016 2017 Price Quantity Price Quantity Escape SUVS $24,485 307,069 $24,645 308,296 F-series trucks $44,400 820,799 $47,800 896,764 Round all numerical answers to two decimal places. a. Calculate the amount contributed by Ford to U.S. real and nominal GDP from the sales of the two models in 2016 and 2017. 8:50 PM 10/13/2020 9. DELL 3 F4 E5arrow_forwardExercise 2: GDP and inflation Consider an economy that produces and consumes haircuts and cars. The next table contains data on two different years. 2015 2021 $50,000 $60,000 $10 $20 Number of cars 100 120 Number of haircuts 500,000 400,000 Price of a car Price of a hair cut a) Compute the following indicators for each year using 2015 as your base year: nominal GDP, real GDP and the GDP deflator. b) How much did prices go up between 2015 and 2021? What has been the annual inflation rate?arrow_forward
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