User Account

All Pages

What was the growth rate for real gdp

Assignment Help Macroeconomics
Reference no: EM131023411

Consider the following table of price and quantities produced for a small economy.

Year

Footballs

Grapes

Dresses

Wine

 

Price      Quantity

Price      Quantity

Price      Quantity

Price       Quantity

2000

2001

$5             3

$6             4

$1            15

$2            20

$20            4

$25            5

$5             5

$8.50           6

a) Assume that all grapes in this economy are used to make wine. Compute nominal GDP for 2000 and 2001.

b) Continue to assume that all grapes are used to make wine. Using 2000 as the base year, compute real GDP in 2000 and 2001.

c) Find the GDP Deflator for 2000 and 2001 on a 100-point scale. Report your answers to two decimal places, if necessary.

d) What was the growth rate for real GDP between 2000 and 2001? Express your answer as a percentage.

e) Assume that the typical consumer in this economy purchases 2 footballs, 1 dress, and 4 bottles of wine per year. Using 2000 as the base year, find the CPI in 2000 and 2001 on a 100-point scale.

f) What was the inflation rate in this economy between 2000 and 2001? Express your answer as a percentage.

Reference no: EM131023411

Questions Cloud

What happens to the equilibrium interest rate r : where b is the marginal propensity to consume, G is the government spending, I^0 is the maximum investment level, and a is the responsiveness of investment to interest rates. The LM curve defines the interest rate at which the money market clears
What is the problem the study was conducted to resolve : What is the problem the study was conducted to resolve? Why is the problem important for health care administrators to study? Study purpose: What is the purpose of the study?
How many years will it take them to double their gdp : The GDP of the People's Republic of Banania grew 3.5% last year. Using the rule of 70 how many years will it take them to double their GDP
Problem regarding the high inflation rate : Suppose that a year after the investors purchase the bonds, the inflation rate turns out to be 6 percent, rather than the 2 percent that had been expected. Who gains and who loses from the unexpectedly high inflation rate?
What was the growth rate for real gdp : Find the GDP Deflator for 2000 and 2001 on a 100-point scale. Report your answers to two decimal places, if necessary - What was the growth rate for real GDP between 2000 and 2001?
A c++ program to validate user inpu : In this exercise, you use what you have learned about validating user input to answer Questions 1 - 3.1. You plan to use the following statement in a C++ program to validate user input:while(inputString == "")What would your user enter to cause this ..
Problem regarding the certificates of deposit : Frank has no pension but has saved a considerable amount, which he has invested in certificates of deposit (CDs) at his bank. Currently, Frank's CDs pay him interest of $2,300 per month.
Write a paper about introduction listing my goals : Write a paper about Introduction listing ‘'my Goals''. A clear and precise log of eating for three weeks. My goals achieved or not why not? Your four page paper.
Write visual logic code to convert fahrenheit to celsius : How do I write visual logic code to convert Fahrenheit to celsius?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Explain the effectiveness of the exchange rate regime

Explain the effectiveness of the exchange rate regime being used in terms of achieving macroeconomics objectively in South Africa and discuss any four macroeconomics objectives which can be used to judge the performance of the economy.

  Determine long run equilibrium

A company in a purely competitive industry is currently producing 1000 units a day at a total cost of $450. If the firm produced 800 units per day, its total cost would be $300.

  Analyze the major barriers for entry and exit into the

analyze the major barriers for entry and exit into the airline industry. explain how each barrier can foster either

  General dynamics regarding human resource issues

The UAW labor contract with General Dynamics expired in October 2001. IN the months preceding the expiration date, bargaining teams for the UAW and General Dynamics met to negotiate a new contract.

  Does this present a problem for the economy

If you assume that wealth (W) and investment (I) remain constant (we are ignoring the fact that saving adds to the stock of wealth), what are the equilibrium levels of GDP (Y), consumption (C), and saving (S)?

  Do you really want a minimum wage

Thread Prompt: In this module/week's forum, you must read 1 of the articles above and provide a 2-3-sentence summary of the article in the opening paragraph.

  Why could not monetary policy prevent the earlier booms

Why could not monetary policy prevent the earlier booms? Explain the dynamics implied by the so-called Walters critique and could the countries have used other policies to counteract the earlier booms?

  How did the hurricane affect the production possibilities

Hurricane Katrina which hit the Gulf Coast region in August 2005, resulted in massive flooding which destroyed large sections of New Orleans. Suppose prior to this event, New Orleans was producing an output combination given by a point.

  Determine optimal bundle pricing strategy

You are the manager of a local sporting goods store. Given the reservation prices, determine your optimal bundle pricing strategy.

  Suppose that the average prices of refrigerators have

suppose that the average prices of refrigerators have fallen over the past few years yet the refrigerator companies

  1 determine a new variable - inflation defined as the

1 determine a new variable - inflation defined as the annual percentage increase in consumer prices.2 give a graphical

  Identifying the optimal input choice of inputs

The largo publishing house uses 400 printers and 200 printing presses to produce books. A printer's wage rate is $20, and the price of the printing press is $5,000.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd