1. Consider an economy with two goods, cheese and salad. Suppose that the prices and quantities sold in 2012 and 2013 are the following: Products Cheese Salad 2012 Price 10 15 2013 Price 2012 Quantity 2013 Quantity 12 16 10 5 9 b. Calculate the real GDP for 2013 using 2012 as a base year. 8 a. Calculate the nominal GDP for 2012 and for 2013. Explain how you got your numbers. c. Calculate the real GDP growth rate for 2012 to 2013, round to the nearest tenth. d. Calculate the cost of the CPI basket if the market basket includes 2 cheeses and 1 salad in 2012. e. Assume that the base year is 2012 and the market basket includes 2 cheeses and 1 salad. Calculate the CPI for 2013

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Measuring A Nation's Income
Section: Chapter Questions
Problem 6PA
icon
Related questions
Question
100%
1. Consider an economy with two goods, cheese and salad. Suppose that the prices and
quantities sold in 2012 and 2013 are the following:
Products
Cheese
Salad
2012 Price
10
15
2013 Price 2012 Quantity 2013 Quantity
12
16
10
5
9
b. Calculate the real GDP for 2013 using 2012 as a base year.
8
a. Calculate the nominal GDP for 2012 and for 2013. Explain how you
got your numbers.
c. Calculate the real GDP growth rate for 2012 to 2013, round to the
nearest tenth.
d. Calculate the cost of the CPI basket if the market basket includes 2
cheeses and 1 salad in 2012.
e. Assume that the base year is 2012 and the market basket includes 2
cheeses and 1 salad. Calculate the CPI for 2013
Transcribed Image Text:1. Consider an economy with two goods, cheese and salad. Suppose that the prices and quantities sold in 2012 and 2013 are the following: Products Cheese Salad 2012 Price 10 15 2013 Price 2012 Quantity 2013 Quantity 12 16 10 5 9 b. Calculate the real GDP for 2013 using 2012 as a base year. 8 a. Calculate the nominal GDP for 2012 and for 2013. Explain how you got your numbers. c. Calculate the real GDP growth rate for 2012 to 2013, round to the nearest tenth. d. Calculate the cost of the CPI basket if the market basket includes 2 cheeses and 1 salad in 2012. e. Assume that the base year is 2012 and the market basket includes 2 cheeses and 1 salad. Calculate the CPI for 2013
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 7 steps

Blurred answer
Recommended textbooks for you
Brief Principles of Macroeconomics (MindTap Cours…
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Macroeconomics: Private and Public Choice (MindTa…
Macroeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506756
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc