Reference no: EM13146663
1. Why does inflation make nominal GDP a poor measure of the increase in total production?
2. Which component of GDP will be affected by each of the following transactions involving FlyCheap Airlines? If you do not believe any component will be affected, briefly explain why.
i. You purchase a ticket on a FlyCheap Airlines to visit your niece.
ii. FlyCheap Airlines purchases a new jetliner from Boeing.
iii. FlyCheap Airlines purchases new seats to be installed on a jetliner it already owns.
iv. FlyCheap Airlines purchases 200 million gallons of fuel.
v. A French citizen purchases a ticket to fly on a FlyCheap flight from Paris to New York.
vi. The city of Nashville agrees to spend funds to extend one of the runways so that FlyCheap will be able to land larger jets.
3. Use the table to answer the following questions.
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Year
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Real GDP (Billions of 2000 Dollars)
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1993
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$7,113
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1994
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7,101
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1995
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7,337
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1996
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7,533
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1997
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7,836
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i. Calculate the growth rate of real GDP for each year from 1994 to 1997.
ii. Calculate the average annual growth rate of real GDP for the period from 1994 to 1997.
iii. How does the average annual growth rate you calculated in (ii) above compare to the average growth rate the U.S. normally expects?
4. In an open economy, trade is allowed between countries. Assume a consumer purchases $1,000 worth of furniture manufactured in China. Answer the following:
a. Which component(s) of GDP are impacted by this purchase?
b. Does GDP increase, decrease or stay the same? Briefly explain why.
c. Does your answer change if the company in China is a U.S.-owned company? Why or why not?
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Determine the time length of the warranty
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Explain eventually all of the kinetic energy of the stirrer
: In the following experiment, the water in the glass is stirred by slowly lowering a weight (m=3kg) through a series of pulleys. If the 3kg weight is lowered 10m, the stirrer spins, but eventually all of the kinetic energy of the stirrer is turned ..
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What is the average upwelling speed
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Calculate the average annual growth rate of real gdp
: Calculate the growth rate of real GDP for each year from 1994 to 1997 and calculate the average annual growth rate of real GDP for the period from 1994 to 1997.
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Which of the following is mismatched
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: Logan Appliances purchased $8,000 of merchandise, 2/10, n/30, FOB shipping point. The seller prepaid the shipping charges of $200. If Logan pays for this merchandise within the discount period, how much should Logan remit to the seller?
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Show that the average rate of change
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