MACROECONOMICS
14th Edition
ISBN: 9781337794985
Author: Baumol
Publisher: CENGAGE L
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Question
Chapter 6.A, Problem 3TY
To determine
(a)
GDP deflator in 2014.
To determine
(b)
Nominal GDP in 2015.
To determine
(c)
Real GDP in 2016.
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If a country produces the following items during the year, calculate GDP.Item Quantity Price Market Value(Quantity x Price)Cars 10 $20,000Computers 100 $1, 000Books 1,000 $10GDP =
Use the following table to find the missing values:
GDP Chart.pdf
For each of the following determine if the item is counted in GDP:
(a) Eggs you buy at the supermarket to make pancakes with for your kids for breakfast.
(b) Eggs the local diner buys to make pancakes with to sell to customers.
(c) A motherboard that Dell buys to put in the laptops they make.
(d) A used car that a salesman sells off the lot at a car dealership.
(e) A tow bar that the county airport buys to move airplanes around on the ramp.
Use the information from the preceding table to fill in the following table.
Nominal GDP
Real GDP
(Base year 2019, dollars) GDP Deflator
Year
(Dollars)
2019
2020
2021
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Similar questions
- Which of the following are included in GDP calculations? a. Cleaning services performed by Molly Maid Corporation b. Lawn-mowing services performed by a neighborhood child c. Drugs sold illegally on a local street comer d. Prescription drugs manufactured in the United States and sold at a local pharmacy e. A rug woven by hand in Turkey f. Air pollution that diminishes the quality of the air you breathe g. Toxic-waste cleanup performed by a local company h. Car parts manufactured in the United States for a car assembled in Mexico i. A purchase of 1,000 shares of IBM stock j. Monthly Social Security payments received by a retireearrow_forwardList some of the reasons why economists should not consider GDP an effective measure of the standard of living in a county.arrow_forwardUsing the expenditure approach, calculate GDP using the following data: Item Amount in dollars (billions) Consumption 7,600 Consumption of Durable Goods 1,600 Consumption of Non Durable Goods 2,800 Consumption of Services 3,200 Investment 2,750 Fixed Investment 1,000 Government purchases of Goods & Services 1,675 Government Transfer Payments 450 Exports 750 Imports 1,600 GDP Equalsarrow_forward
- Using the following information, calculate the GDP at Market Price Sales 2000 Intermediate consumption 500 Change in inventory 10 Production Tax 20 Production Subsidies 5arrow_forwardCalculate the GDP using the Income Approach: Corporate Profits $200 Interests $150 Indirect Business Taxes $230 Depreciation $200 Compensation of Employees $1,350 Proprietors' Income $150 Rental Income $70 Consumption Expenses $1,400 Government Expenditure $500 Net Exports $40 Net Foreign Income $50 Group of answer choices $1,920 $2,400 $2,450 $1,940arrow_forwardWhich of the following statements best describe how economists calculate GDP? Group of answer choices Economists at the Census bureau collect data from surveys sent to consumers, private firms and government agencies and add them up on a yearly basis. Economists at the Bureau of Economic Analysis pull together data on sales, imports, exports, government purchase and investments from various government sources every 3 months. Economists at the Bureau of Labor Statistics collect data from surveys sent to consumers, private firms and government agencies and add them up every 3 months. Economists at the Congressional Budget Office calculate GDP for a given year by adjusting the previous year’s GDP with inflation.arrow_forward
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