Question 1 (10 marks): GDP and GNP. Citizens of the country of Heehaw produce hay and...

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Question 1 (10 marks): GDP and GNP. Citizens of the country of Heehaw produce hay and provide entertainment services (banjo playing). In 2016 they produced $15 million worth of hay, with $11 million consumed domestically and the other $4 million sold to neighbouring countries. They provided $7 million worth of banjo-playing services, $5 million in Heehaw and $2 million in neighbouring countries. They purchased $6 million worth of soda pop from neighbouring countries. Calculate the magnitudes of GNP, GDP. net factor payments from abroad, net exports, and the current account balance. Question 2 (15 marks): Price indices. The country of Myrule has produced the following quantity of yams and potatoes, with the price of each listed in dollar terms: Good Yams Potatoes 2016 Quantity Price 8000 $4 6000 $8 2017 Quantity 10000 5000 Price $3 $14 (a) Using 2016 as the base year, what are the price indexes for 2016 and 2017? (b) What is the inflation rate using this index? (c) What is the percent change in real output using this index? Question 1 (10 marks): GDP and GNP. Citizens of the country of Heehaw produce hay and provide entertainment services (banjo playing). In 2016 they produced $15 million worth of hay, with $11 million consumed domestically and the other $4 million sold to neighbouring countries. They provided $7 million worth of banjo-playing services, $5 million in Heehaw and $2 million in neighbouring countries. They purchased $6 million worth of soda pop from neighbouring countries. Calculate the magnitudes of GNP, GDP. net factor payments from abroad, net exports, and the current account balance. Question 2 (15 marks): Price indices. The country of Myrule has produced the following quantity of yams and potatoes, with the price of each listed in dollar terms: Good Yams Potatoes 2016 Quantity Price 8000 $4 6000 $8 2017 Quantity 10000 5000 Price $3 $14 (a) Using 2016 as the base year, what are the price indexes for 2016 and 2017? (b) What is the inflation rate using this index? (c) What is the percent change in real output using this index?

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QUESTION 1 GNP Total value of goods and services produced by Heehaw nationals regardless of location ... View the full answer