Question

Suppose this year’s nominal GDP is $1,000 million and price level is 100. If nominal GDP increases by 2 percent and the price level goes up by 3 percent next year, calculate next year’s nominal GDP, price level, and real GDP.

Answer #1

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Suppose this year’s nominal GDP is $1,000 million and price
level is 100. If nominal GDP increases by 2 percent and the price
level goes up by 3 percent next year, calculate next year’s nominal
GDP, price level, and real GDP.

Nominal GDP increases from $5 trillion to $5.5 trillion
while the price level increases by 10%. Has real income
increased?
Nominal GDP increases from $6 trillion to $6.8 trillion
while real GDP increases from $6 trillion to $6.2 trillion. What
happened to the price level?
Nominal GDP increases from $7 trillion to $8 trillion
while real GDP increases from $7 trillion to $7.5 trillion. By what
percent did real income change?

Suppose that nominal GDP was $9000000.00 in 2005 in Orange
County California. In 2015, nominal GDP was $12000000.00 in Orange
County California. The price level rose 3.00% between 2005 and
2015, and population growth was 4.50%. Calculate the following
figures for Orange County California between 2005 and 2015.
Nominal GDP growth was __%
Economic growth was __%
Inflation was __%
Real GDP growth was __%
Per capita GDP growth was __%
Real per capita GDP growth was __%

Growth rate of nominal GDP – Inflation rate =
a. price
level.
b. the growth
rate of nominal GDP.
c. the growth
rate of real GDP.
d. the growth
rate of long-run trend GDP.
e. how much the
economy contracts during a recession.
2. The
consumption category does not include purchases
a. of new cars
made by consumers.
b. of
entertainment services made by consumers.
c. of new
clothing made by consumers.
d. of new houses
made by consumers....

Suppose that nominal GDP was $9750000.00 in 2005 in Orange County
California. In 2015, nominal GDP was $11500000.00 in Orange County,
California. The price level rose 2.00% between 2005 and 2015, and
population growth was 3.25%. Calculate the following figures for
Orange County California between 2005 and 2015.
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...

Suppose that nominal GDP was $9250000.00 in 2005 in Orange
County California. In 2015, nominal GDP was $11000000.00 in Orange
County California. The price level rose 2.00% between 2005 and
2015, and population growth was 3.50%. Calculate the following
figures for Orange County California between 2005 and 2015. Give
all answers to two decimals.
a. Nominal GDP growth was %.
Part 2 (1 point)
b. Economic growth was %.
Part 3 (1 point)
c. Inflation was %.
Part 4 (1 point)
d. Real...

Suppose that nominal GDP was $9500000.00 in 2005 in Montgomery
County Maryland. In 2015, nominal GDP was $11250000.00 in
Montgomery County Maryland. The price level rose 1.50% between 2005
and 2015, and population growth was 4.25%. Calculate the following
figures for Montgomery County Maryland 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...

Suppose that the nominal GDP for 1980 is 490 while the 1980 real
GDP is 118. If the base year is 1970, how much larger is the 1980
price level compared to the 1970 price level?

Suppose that nominal GDP was $10000000.00 in 2005 in Orange
County California. In 2015, nominal GDP was $11750000.00 in Orange
County California. The price level rose 3.00% between 2005 and
2015, and population growth was 4.00%. Calculate the following
figures for Orange County California between 2005 and 2015. Give
all answers to two decimals.
a. Nominal GDP growth was %.
Part 2 (1 point)
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b. Economic growth was %.
Part 3 (1 point)
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c. Inflation was %.
Part...

1. Growth rate
of nominal GDP – Inflation rate =
a. price
level.
b. the growth
rate of nominal GDP.
c. the growth
rate of real GDP.
d. the growth
rate of long-run trend GDP.
e. how much the
economy contracts during a recession.
2. The
consumption category does not include purchases
a. of new cars
made by consumers.
b. of
entertainment services made by consumers.
c. of new
clothing made by consumers.
d. of new houses
made by consumers....

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