Question

Refer to the following table, what has happened in the economy from 2008 to 2009?

2008 | 2009 | |

Nominal GDP | $10,000 | $12,000 |

Real GDP | $9,500 | $10,500 |

The price level has risen. |

The price level remained constant. |

The price level has fallen. |

Not enough information is availalble to determine what has happened to prices. |

Answer #1

A country reported nominal GDP of $100 billion in 2010 and $75
billion in 2009. It also reported a GDP deáator of 125 in 2010 and
120 in 2009. Based on this information, what happened to
Real output between 2009 and 2010?
Prices between 2009 and 2010?
Can you conclude whether the economy is better or worse of in
2010 relative to 2009?

2. Suppose that a simple economy produced only three goods:
wheat, automobiles, and houses. The table below lists the quantity
and prices for each of the goods for year 2000 and 2010. Based on
table, answer the following questions:
Quantity produced in 2000
Price in 2000
Quantity produced in 2010
Price in 2010
Wheat
100
$5
100
$10
Milk
20
$3
20
$6
Chairs
4
$50
4
$100
a) Calculate nominal GDP in year
2000.
b) Calculate nominal GDP in...

The following table lists the prices of a small market basket
purchased in both 2008 and 2018. Assuming that this basket of goods
is representative of all goods and services, compute the price of
the market basket in (a) 2008 and (b) 2018 and then answer two
questions about price levels and real income.
Price per Unit
a. Cost of Market Basket in 2008
b. Cost of Market Basket in 2018
Item
Quantity
2008
2018
(Quantity*2008 price)
(Quantity*2018 price)
Coffee...

Use the table below to answer the question. Year 2005 2006 2007
2008 2009 Nominal Price $85 $87 $90 $86 $91 Price Level 112 115 117
121 128 How much has the price of this product changed on average
per year in percentage Real terms over the period 2005 to 2009?
-6.32% -1.62% 0.38% -4.32%

Based on the data in the table below, explain what happened to
output and inflation in the hypothetical economy between 1998 and
1999. show all computations.
1998 1999
Nominal GDP ($ billions) $14,700 $15,200
Real GDP ($Billions 1992 chain weighted) $12,100 $11,900

Consider a simple economy that produces two goods: pens and
erasers. The following table shows the prices and quantities of the
goods over a three-year period.
Year
Pens
Erasers
Price
Quantity
Price
Quantity
(Dollars per pen)
(Number of pens)
(Dollars per eraser)
(Number of erasers)
2013
1
110
2
185
2014
2
155
4
200
2015
3
110
4
165
Use the information from the preceding table to fill in the
following table.
Year
Nominal GDP
Real GDP
GDP Deflator...

Refer to the following table, and answer the questions that
follow:
Year
Nominal GDP
Real GDP
GDP deflator
2012
$210,000
??
100.0
2013
??
$215,000
110.0
2014
$260,000
$220,000
??
(a) Compute the nominal GDP in 2013.
(b) Compute the price level in 2014.
(c) Calculate the inflation rate between 2012 and 2013.

Q.2 Refer to the following table, and answer the questions that
follow:
Year
Nominal GDP
Real GDP
GDP deflator
2012
$210,000
??
100.0
2013
??
$215,000
110.0
2014
$260,000
$220,000
??
(a) Compute the nominal GDP in 2013.
(b) Compute the price level in 2014.
(c) Calculate the inflation rate between 2012 and 2013.

Refer to the data in the table given below. Suppose that the
present equilibrium price level and level of real GDP are 100 and
$215, and that data set A represents the relevant aggregate supply
schedule for the economy.
(A)
(B)
(C)
Price
Level
Real
GDP
Price
Level
Real
GDP
Price
Level
Real
GDP
100
215
110
240
110
290
100
240
100
240
100
265
100
265
95
240
95
240
100
290
90
240
90
215
a. What...

Recall the method of calculating real GDP detailed in the
chapter. As you may already have noticed, this method has a
problem: in calculating aggregate output, this method weights the
output of the various goods and services by their relative prices
in the base year. Say, for example, a textbook costs $100 in the
base year, and a laptop costs $2,000. This means that the laptop
would have 20 times the weight of a book in calculating aggregate
output. But...

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