Macroeconomics (7th Edition)
Macroeconomics (7th Edition)
7th Edition
ISBN: 9780134738314
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 8, Problem 8.3.5PA

Subpart (a):

To determine

Nominal GDP and Real GDP.

Subpart (b):

To determine

Nominal GDP and Real GDP.

Subpart (c):

To determine

Nominal GDP and Real GDP.

Subpart (d):

To determine

Nominal GDP and Real GDP.

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Suppose, in a year, an economy reports a nominal GDP of $100 billion dollar, a Real GDP of $200 billion and a Real GDP per person of $40,000, Briefly explain why the three measures are different from each other (Specifically, why is nominal GDP less than Real GDP and why is Real GDP per person less than the other two)? Which of the three is a better measure of the entire economy's well-being. Which is a better measure of the standard of living of people in the economy? Explain
Answer the part  d,e and f... Thank you..       Suppose that nominal GDP was $9500000.00 in 2005 in Fairfax County Virginia. In 2015, nominal GDP was $11000000.00 in Fairfax County Virginia. The price level rose 2.00% between 2005 and 2015, and population growth was 3.25%. Calculate the following figures for Fairfax County Virginia between 2005 and 2015. Give all answers to two decimals.   a. Nominal GDP growth was _______ %.   b. Economic growth was ________ %.   c. Inflation was ______%.   d. Real GDP growth was ________%.   e. Per capita GDP growth was _______%.   f. Real per capita GDP growth was ________%.
What happens to disposable personal income if tax rates increased? How could nominal GDP increase but real GDP remain the same? Which is a better indicator of growth in job opportunities: an increase in nominal GDP or real GDP? Is it possible for real GDP to increase and there to be no increase in employment? Determine the effect on GDP for the following. a.         Consumption increases. b.         Government spending falls.
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