Refer to Table 8-22. Consider the data above for a simple economy: Using 2011 as the base year, calculate nominal GDP, real GDP, and the GDP deflator for 2016. Show your work.
Nominal GDP 2016: (50 x $150) + ($2,300 x 2.40) + (350 x $55) = $32,270
Real GDP 2016: (50 x $250) + (2,300 x $2.00) + (350 x $50) = $34,600
GDP Deflator (Nominal GDP divided by Real GDP multiplied by 100):
$32,270 / $34,600 = 0.93265 x 100 =
Ans: 93.3
You might also like to view...
Which of the following are components of fiscal policy?
a. Transfer payments only b. Money supply and government purchases c. Government purchases only d. Government purchases, transfer payments, and taxes e. Taxes and money supply
An estimated short-run cost function
A. holds the capital stock constant. B. can be estimated using time-series data. C. can be used to make price and output decisions. D. both a and c E. all of the above
The quantity of TVs sold is 100 at the unit price $200. Suppose the price elasticity of demand for TVs by the initial value method is 2.0, and you would like to decrease the unit price for TVs to $150. Then the new quantity sold must be:
A. 125. B. 150. C. 200. D. 250.
Advertising is used by firms in a monopolistic competitive industry to
A) differentiate their product from those of competitors. B) increase brand loyalty. C) increase demands for their individual products. D) all of the above.