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

  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?

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