Reference no: EM131403008
In year 1 and year 2, there are two products produced in a given economy, computers and bread. Suppose that there are no intermediate goods. In year 1, 20 computers are produced and sold at $1,000 each, and in year 2, 25 computers are sold at $1,500 each. In year 1, 10,000 loaves of bread are sold for $1.00 each, and in year 2, 12,000 loaves of bread are sold for $1.10 each.
(a) Calculate nominal GDP in each year.
(b) Calculate real GDP in each year, and the percentage increase in real GDP from year1 to year 2 using year 1 as the base year. Next, do the same calculations using the chain-weighting method.
(c) Calculate the implicit GDP price deflator and the percentage inflation rate from year 1 to year 2 using year 1 as the base year. Next, do the same calculations using the chain-weighting method.
(d) Suppose that computers in year 2 are twiceas productive as computers in year 1. That is, computers are of higher quality in year 2 in the sense that one computer in year 2 is equivalent to two computers in year 1. How does this change your calculations in parts (a) to (c)? Explain any differences.
Use the method of least squares to estimate the line
: Use the method of least squares to estimate the line, E(y) = β0 + β1x. Interpret the β estimates in the words of the problem.
|
Target market of young men and women
: Rue 21 is a successful specialty retailer selling value fashion items and accessories to its target market of young men and women. The company attributes its success to its location strategy, which enables Rue 21 to take advantage of a variety of ..
|
Sound marketing decision-making
: This assignment will assess the following competency: 4. Demonstrate the ability to exhibit sound marketing decision-making.
|
Describe a business situation in which concept could applied
: Explain the concept in your own words and describe a business situation in which the concept could be applied. Do not choose a concept previously chosen by one of your classmates.
|
Calculate nominal gdp in each year
: Calculate the implicit GDP price deflator and the percentage inflation rate from year 1 to year 2 using year 1 as the base year. Next, do the same calculations using the chain-weighting method.
|
Society long-term needs
: Icebreaker considers the impact of its action on society's long-term needs. It strives to create a healthy, sustainable environment. In doing these things, Icebreaker is practicing ______.
|
Ensure the rights of employees
: Which of the following is Icebreaker requiring in its contracts with suppliers to ensure the rights of employees?
|
Calculate gross domestic product for the year
: Assume an economy with two firms. Firm A produces wheat and firm B produces bread. In a given year, firm A produces 50,000 bushels of wheat, sells 20,000 bushels to firm B at $3 per bushel, exports 25,000 bushels at $3 per bushel, and stores 5,000..
|
The dannon company case study
: Please list the key CSR activities led by Dannon (20%). In your view, should Dannon start proactively communicate to consumers about its CSR initiatives? Justify your answer with an analysis of the benefits and risks involved with such a decision
|