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8 Jun 2018
ch. 10
11. Problems and Applications Q5
Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 3 bars and the price is $4. In year 2, the quantity produced is 4 bars and the price is $5. In year 3, the quantity produced is 5 bars and the price is $6.
Using year 1 as the base year, compute nominal GDP, real GDP, and the GDP deflator for each year.
Year
Nominal GDP
Real GDP
GDP Deflator
(Dollars)
(Dollars)
Year 1 Year 2 Year 3
The percentage growth rate of real GDP from year 2 to year 3 is __________
The inflation rate as measured by the GDP deflator from year 2 to year 3 is ____________
ch. 10
11. Problems and Applications Q5
Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 3 bars and the price is $4. In year 2, the quantity produced is 4 bars and the price is $5. In year 3, the quantity produced is 5 bars and the price is $6.
Using year 1 as the base year, compute nominal GDP, real GDP, and the GDP deflator for each year.
| Year | Nominal GDP | Real GDP | GDP Deflator |
|---|---|---|---|
| (Dollars) | (Dollars) | ||
| Year 1 | |||
| Year 2 | |||
| Year 3 |
The percentage growth rate of real GDP from year 2 to year 3 is __________
The inflation rate as measured by the GDP deflator from year 2 to year 3 is ____________
Keith LeannonLv2
10 Jun 2018
