1. The economy produces 2 types of goods. Over the past 3 years, the Bureau of Economic Analysis (BEA) recorded:
2014 2015 2016
P Q P Q P Q
good a 10 20 11 20 12 21
good b 100 40 100 45 105 45
2. Compute Nominal GDP and the Nominal GDP growth rate in 2015 and 2016.
3. Compute Real GDP and the Real GDP growth rate in 2015 and 2016. Use 2014 as the base year.
4. Compute the GDP deflator and the growth in the deflator in 2015 and 2016.
1. The economy produces 2 types of goods. Over the past 3 years, the Bureau of Economic Analysis (BEA) recorded:
2014 2015 2016
P Q P Q P Q
good a 10 20 11 20 12 21
good b 100 40 100 45 105 45
2. Compute Nominal GDP and the Nominal GDP growth rate in 2015 and 2016.
3. Compute Real GDP and the Real GDP growth rate in 2015 and 2016. Use 2014 as the base year.
4. Compute the GDP deflator and the growth in the deflator in 2015 and 2016.
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The following table shows some data for an economy that produces only two goods: milk and honey.
| Year | Milk | Honey | ||
| Price | Quantity | Price | Quantity | |
| ($) | (Quarts) | ($) | (Quarts) | |
| 2016 | 1 | 200 | 2 | 100 |
| 2017 | 1 | 400 | 2 | 200 |
| 2018 | 2 | 400 | 4 | 200 |
The following table shows the Nominal GDP, Real GDP, and GDP Deflator for each year listed.
| Year | Nominal GDP | Real GDP | GDP Deflator |
| ($) | ($) | ||
| 2016 | 400 | 400 | 100 |
| 2017 | 800 | 800 | 100 |
| 2018 | 1600 | 800 | 200 |
Compute the % change in the Nominal GDP, Real GDP, and the GDP Deflator in 2017 and 2018 from the preceding year.
| Year | % Change in | ||
| Nominal GDP | Real GDP | GDP Deflator | |
| 2017 | |||
| 2018 | |||
From 2016 to 2017, _______ did not change; and from 2017 to 2018, ________ did not change.
Comparing the changes in 2017 and 2018, economic well-being increased more in _________
