ECON 1BB3 Lecture : lecture six
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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 $6.
Using year 1 as the base year, compute nominal GDP, real GDP, and the GDP deflator for each year.
Year | Nominal GDP | Real GDP | GDP Deflator |
---|---|---|---|
(Dollars) | (Dollars) | ||
Year 1 | Ā | Ā | Ā |
Year 2 | Ā | Ā | Ā |
Year 3 | Ā | Ā | Ā |
The percentage growth rate of real GDP from year 2 to year 3 is. ______%
The inflation rate as measured by the GDP deflator from year 2 to year 3 is. ______%
The following table shows some data for an economy that produces only two goods: milk and honey.
Year | Milk | Honey | ||
PriceĀ | Quantity | Price | Quantity | |
($) | (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 | Ā | Ā | Ā |
2018 | Ā | Ā | Ā |
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 _________
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 ____________