Using the information below on the production of goods in Bongolongo, calculate and explain the following:...
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Using the information below on the production of goods in Bongolongo, calculate and explain the following: a. Nominal and Real GDP for each year. b. If only 1/3 of all lego produced in Bongolongo was sold in Bongolongo and the remainder exported to other countries - how does this change your answer to (a). Explain. Year Q of Price Q of Q of Q of Q of apples per kg lego per lego (kg) Price Price Price Price shirts of shorts per milk рer shirts short (litres) litre apples pack milk 2014 25 $34 15 $32 200 $2.50 320 $3.50 65 $8.50 2015 32 $34 25 $30 220 $2.00 400 $3.50 60 $12 2016 32 $40.50 36 $35 230 $3.00 420 $3.00 55 $15 c. The average person in Bongolongo consumes 6 shirts, 4 pairs of shorts, 20L of milk, 7kg of apples and pack of lego each year. This is unchanged over the 3 years. What is the CPI for each year? Explain. d. Is the standard of living/prosperity of the economy increasing over time? Explain your answer. e. We know GDP doesn't give the best indicator of a country's level of prosperity. Why not? What other (one) indicator would you choose to look at? Explain your answer. Using the information below on the production of goods in Bongolongo, calculate and explain the following: a. Nominal and Real GDP for each year. b. If only 1/3 of all lego produced in Bongolongo was sold in Bongolongo and the remainder exported to other countries - how does this change your answer to (a). Explain. Year Q of Price Q of Q of Q of Q of apples per kg lego per lego (kg) Price Price Price Price shirts of shorts per milk рer shirts short (litres) litre apples pack milk 2014 25 $34 15 $32 200 $2.50 320 $3.50 65 $8.50 2015 32 $34 25 $30 220 $2.00 400 $3.50 60 $12 2016 32 $40.50 36 $35 230 $3.00 420 $3.00 55 $15 c. The average person in Bongolongo consumes 6 shirts, 4 pairs of shorts, 20L of milk, 7kg of apples and pack of lego each year. This is unchanged over the 3 years. What is the CPI for each year? Explain. d. Is the standard of living/prosperity of the economy increasing over time? Explain your answer. e. We know GDP doesn't give the best indicator of a country's level of prosperity. Why not? What other (one) indicator would you choose to look at? Explain your answer.
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Here the Nminl GD mesure the mrket vlue f ll gds nd servies rdues with reset t urrent rie by n entir... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0078034640
7th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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