Class Notes (807,343)
York University (33,498)
Economics (1,498)
ECON 2400 (121)
Lecture

# typos_a2400_3rd.pdf

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School
York University
Department
Economics
Course
ECON 2400
Professor
Wai Ming Ho
Semester
Fall

Description
Correction to the answers to the end-of-chapter questions in the textbook (Third Canadian edition) ▯ Problem 5 of Chapter 2 It is noted that the solution assumes that 1,500 million pounds of broccoli are produced in year 1, and 2,400 million pounds of broccoli are produced in year 2. a) Year 1 nominal GDP = 1;500m: ▯ \$0:50 + 300m: ▯ \$0:80 = \$990m: Year 2 nominal GDP = 2;400m: ▯ \$0:60 + 350m: ▯ \$0:85 = \$1;737:5m: Year 2 real GDP = 2;400m: ▯ \$0:50 + 350m: ▯ \$0:80 = \$1;480m: Year 2 GDP de ator = (\$1;737:5=\$1;480) ▯ 100 = 117:40: The percentage change in the de ator = 17:40%. b) The value of the base-year basket at year 2 prices = 1;500m:▯\$0:60+300m:▯\$0:85 = \$1;155m: Year 2 CPI equals (\$1;155=\$990) ▯ 100 = 116:67: The percentage change in the de ator = 16:67%. If we assume that 500 million pounds of broccoli are produced in year 1, and 400 million pounds of broccoli are produced in year 2, we will get a) Year 1 nominal GDP = 500m: ▯ \$0:50
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