Consider an economy that produces and consumes only three types of fruit: apples, oranges and bananas....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider an economy that produces and consumes only three types of fruit: apples, oranges and bananas. In 2009 and 2010, the production/consumption and price data were as follows: Quantity Price S2 per unit S3 per unit $4 per unit Fruit Apples 3000 2009 Bananas 6000 Oranges 8000 Quantity Price $3 per unit $2 per unit $5 per unit Fruit Apples Bananas 14000 4000 2010 Oranges 8000 (a) Find nominal GDP for each year. What is the percentage increase in Nominal GDP? (b) Find real GDP for each year (assuming that 2009 is the base year). What is the percentage increase in Real GDP? (c) Find the GDP deflator for each year. By what percentage does the price increase? (d) Would you say that the percentage increase in Nominal GDP in this economy is due more to increases in prices or increases in the physical volume of output? (e) Assuming that 2009 is the reference base year and 2010 is the expen- diture base year, calculate the CPI for each year. Consider an economy that produces and consumes only three types of fruit: apples, oranges and bananas. In 2009 and 2010, the production/consumption and price data were as follows: Quantity Price S2 per unit S3 per unit $4 per unit Fruit Apples 3000 2009 Bananas 6000 Oranges 8000 Quantity Price $3 per unit $2 per unit $5 per unit Fruit Apples Bananas 14000 4000 2010 Oranges 8000 (a) Find nominal GDP for each year. What is the percentage increase in Nominal GDP? (b) Find real GDP for each year (assuming that 2009 is the base year). What is the percentage increase in Real GDP? (c) Find the GDP deflator for each year. By what percentage does the price increase? (d) Would you say that the percentage increase in Nominal GDP in this economy is due more to increases in prices or increases in the physical volume of output? (e) Assuming that 2009 is the reference base year and 2010 is the expen- diture base year, calculate the CPI for each year.
Expert Answer:
Answer rating: 100% (QA)
aBase year 3000 x 2 6000 x 3 8000 x 4 6000 1800032000 56000 Current year 4000 x 3 14000 x 2 8000 x 5 ... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
Would you say that real GDP per person is a useful measure of economic well-being? Defend your answer.
-
In the short run, the percentage increase in output tends to correspond to a smaller percentage decrease in the unemployment rate as a result of slippages. Explain the three slippages between changes...
-
Would you say that IBM was in a strong or a weak position in 1970? If you were managing IBM, what kinds of strategic choices would you be likely to make at that time? From its beginnings as a company...
-
In Exercises 8182, graph each linear function. 3x - 4f(x) - 6 = 0
-
The former Soviet Union, a planned economy, was able to maintain consistently high rates of investment for decades. Use the Solow growth model to explain the limitations of growth through an...
-
Figure shows three rotating, uniform disks that are coupled by belts. One belt runs around the rims of disks A and C. Another belt runs around a central hub on disk A and the rim of disk B. The belts...
-
Which of the following is an activity not usually associated with forensic accounting and fraud examination consulting and litigation support? 1. A. Assessing fraud risk associated with internal...
-
Macs Motel opened for business on May 1, 2017. Its trial balance before adjustment on May 31 is as follows. In addition to those accounts listed on the trial balance, the chart of accounts for Macs...
-
1) (4 marks) Given the function f(x) = x a. Determine the average rate of change on the interval -5 x 2. b. Is it possible to determine the instantaneous rate of change at x = 2? Explain why or why...
-
Reconsider the Lockhead Aircraft Co. problem presented in Problem 16.15 regarding a project to develop a new fighter airplane for the U.S. Air Force. Management is extremely concerned that current...
-
CASE STUDY What Segway Learned About the Value of Feasibility Analysis the Hard Way Web: www.segway.com Introduction The Segway PT is a two-wheeled, self-balancing transportation device that consists...
-
Explain the process of job evaluation and comment on how a points rating job evaluation scheme can contribute to perceptions of fairness from the point of view of employees.
-
Performance appraisals are intended to motivate employees towards greater productivity and improve communication/relations between managers and their team members. Explain why performance appraisals...
-
I have to implement a recruitment and promotion policy that attracts a broader group of people, including senior women. But how can the company engage its white male employee majority, who could feel...
-
Write a short report in which you assess the impact of one piece of health and safety legislation in an organisation of your choice.
-
Performance management is described by Armstrong and Baron (2004) as a process which contributes to the effective management of individuals and teams in order to achieve high levels of organizational...
-
5. Consider the circuit diagram in Fig. 1 a. Write the Boolean expression for the function F(x, y, z) b. Construct the truth table describing the outputs of the circuit F(x, y, z), c. Express the...
-
Chris Zulliger was a chef at the Plaza Restaurant in the Snowbird Ski Resort in Utah. The restaurant is located at the base of a mountain. As a chef for the Plaza, Zulliger was instructed by his...
-
Why do most successful industrial societies offer patents and copyright protection, even though these protections enable sellers to charge higher prices?
-
If the government follows an easy monetary policy and the exchange rate is flexible, which of the following will likely be the result? a. A falling real interest rate but higher net exports. b. A...
-
The following table lists the actual per-gallon prices for unleaded regular gasoline for June of each year between 1978 and 1986, together with the values of the CPIs for those years. For each year...
-
Debate: Survey feedback can be a problematic OD technique because it permits people who are affected by organizational policies to generate data that speak against those policies.
-
What qualities would the ideal gatekeeper possess to facilitate the communication of technical information in the firm?
-
Suppose a job enrichment effort in one plant of a manufacturing firm is judged to be very successful. You are the corporate change agent responsible for the project, and you wish to diffuse it to...
Study smarter with the SolutionInn App