### Computing the value of the price index for gdp

Assignment Help Macroeconomics
##### Reference no: EM1373482

Use the following information to answer questions 1-3 (be sure to provide all calculations).

Quantities Produced Quantities Produced Prices

CDs Tennis Racquets CDs Tennis racquet's

Year 2004 110 200 18 90
Year 2005 120 210 20 95

Compute real GDP for 2004 and 2005 using 2004 prices. By what percent did real GDP grow?
Compute the value of the price index for GDP for 2005 using 2004 as the base year. By what percent did prices increase?
Now Compute real GDP for 2004 and 2005 using 2005 prices. By what percent did real GDP grow?
Review the GDP data for the last few years from the Bureau of Economic Analysis's Website. Give a brief summary of the GDP trends over that timeframe and discuss two or three events which may have caused these trends.

#### Questions Cloud

 Kcm associates uses which of the subsequent techniques : To which the Corporation gets the best talent available, the compensation management department uses the information obtained from the market pay survey to compare its compensation policies with those used by the competitors. In this example, KCM .. Economic profile of the airline industry : Provide an economic profile of the Airline industry. Include an industry profile, Industry size data and current developments and trends within the industry. Computes mad for both amit also barbara method : Suppose which May's figure turns out to be 405. Append the table with error columns then, computes MAD for both Amit's also Barbara's method. (16.11 also 19.17) d) Based on these calculations which method seems more accurate. Gives a random sample of the unit values also annual demands : Southern Markets, Inc., is considering the use of ABC analysis to focus on the most critical SKUs in its inventory. Presently, there are approximately 20,000 different SKUs with a total dollar usage of \$10,000,000 per year. Computing the value of the price index for gdp : Use the following information to answer following questions, Compute the value of the price index for GDP for 2005 using 2004 as the base year. By what percent did prices increase? Elucidate what is the safety stock also annual safety stock : Elucidate what reorder point would you recommend. Elucidate what is the safety stock also annual safety stock costs for this product. What strategic groups are present on wedding list market : What direction for strategic development was followed by 1001 listes when it launched its offer of gifts for births, anniversaries, and special occasions? Productivity increase and poverty decrease : Connor knows that the two 'P' represent the key to sustained economic development for low income countries. The two 'P' are labour productivity growth and poverty decrease.

### Write a Review

#### Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

#### In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

#### Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

#### Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

#### Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

#### Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

#### Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

#### Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

#### Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

#### Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

#### Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

#### Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?