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- QUESTION 15 The production and prices in a country in two subsequent years are described by the following table Year 1 Year 2 Good Оиаntity Price Оuantity Price Apples Oranges 60 $1.00 55 X 40 $1.00 45 y Where x is $1.53 and y is $1.53. What is the nominal GDP growth rate in percent terms? (Submit your answer with up to two decimals, i.e., -10.22 for -10.22% and 11.44 for 11.442%.)Answer the question based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year. Year Units of Output Price Per Unit $2 ITT 1 8. 2 10 3 3 15 4 4 18 20 6 a) If year 2 is the base year, then the percentage increase in real GDP from year 2 to year 4 is: percent. b) If prices increased, we need to adjust nominal GDP values to give us a measure of GDP for various years in constant-dollar terms. We refer to that adjustment as: ( Inflating ; Deflating; Compounding GDP ; Indexing ) GDP. <-- Circle a correct answer! c) If the Consumer Price Index rises from 300 to 333 in a particular year, the rate of inflation in that year is: percent. d) Amy sells $100 worth of cotton to Bob. Bob turns the cotton into cloth, which he sells to Camille for $300. Camille uses the cloth to make prom dresses that she sells to Donita for $700. Donita sells the dresses for $1,200 to kids attending the prom. The total…Refer to the information provided in Table Table Prices Production Year 1 Year 2 Year 3 50 Year 1 Year 2 Year 3 $1.20 $1.00 60 $1.00 $1.20 Good X 50 Good Y 100 120 140 $0.60 $0.60 Refer to Table Assume that this economy produces only two goods Good Xand Good Y. The value for this economy's nominal GDP in year 1 is Select one: a. $130 b. $160 O C. $110 d. $160
- Real GDP is best described as: A measure of a nation's output and employment holding wages constant. A measure of a nation's output holding prices constant. A measure of a nation's output at the current level of prices. OOOO. A measure of a nation's prices holding output constant. A measure of a nation's prices at the current level of output. A Moving to the next question prevents changes to this answer. E JUL 19 tv 10 O AWhich of the following statements are correct in general ? The statement will be true if it is true without any additional conditions. The productions and sales of all these goods take place in the United State. The question is whether the values of these goods will be included in the U.S. GDP in the indicated years. Assume that the government can observe and measure all of these activities and transactions. O The value of any good produced in 2020 would be included in 2020 nominal GDP. O The value of any good sold in 2020 would be included in 2020 nominal GDP. O The value of any good produced and sold in 2020 would be included in 2020 GDP. O The value of any good that is produced in 2020 but is not sold in 2020 would not be included in 2020 GDP. O The value of any good that is produced and sold in a legal market in 2020 would be included in 2020 GDP.Production Prices Year1 Year 2 Year 3 Year 1 Year 2 Year 3 Good X 60 80 100 $1.00 $1.00 $1.40 Good Y 100 110 130 $0.80 $0.90 $1.00 Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's GDP deflator in year 2 is Select one: О а. 100 O b. 179 O c. 106.5 O d. 93.9
- In the first quarter of 2020, US real GDP declined about 9%, due to the economics shocks from the Covid 19 virus. If prices were completely flexible, and this means all prices, both inputs (such as labor), as well as output prices, what would you think would have been the drop in GDP? If prices are completely fixed, would the drop in GDP be greater or less than the flexible case? Why? If the Expenditure method of accounting for GDP, has to equal the Income Side, and the economy overproduces a particular item, say automobiles, the income side will also be higher, workers will buy the extra cars with extra income and the economy can gyrate indefinitely higher? Why or why not?Please give a detailed solution with an explanation. Please double-check your sources and make sure the answer is 100% correct. Make sure all questions are answered too.Blank Answer #1:value of all goods and services produced in the economy in the base yearcost of a given market basket of goods and servicesvalue of all goods and services produced in the economy this yearBlank Answer #2:this year's pricesthe base year's pricesBlank Answer #3:value of all goods and services produced in the economy in the base yearcost of a given market basket of goods and servicesvalue of all goods and services produced in the economy this yearBlank Answer #4:this year's pricesthe base year's pricesBlank Answer #5:produced domesticallybought by consumersAlada Belam Canson Country GDP $10,000 $20,000 $ Tij = 0.001 × [(Y₁ × Yj) / D¡j] Distance from: Alada 100 km 250 km Distance from: Belam If the trade volume between Alada and Canson equals to the trade volume between Alada and Belam, what is the expected GDP for Canson? a. 50,000 b. 25,000 c. 100,000 d. 40,000 100 km 100 km
- Refer to the Table below. Assume that this economy produces only two goods Good X and Good Y. The value for this economy's nominal GDP in year 1 is Production Prices Year 1 Year 2 Year 3 Year 1 Year Good X 50 50 60 $1.00 $1.20 Good Y 100 120 140 $0.60 $0.60 130 O 110 140 O 160c. Given the original $20 billion level of exports, what would be net exports and the equilibrium GDP if imports were $10 billion greater at each level of GDP? Fill in the gray-shaded cells. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers (1) Real Domestic Output (GDP-DI), Billions $250 300 350 400 450 500 550 600 (2) Aggregate Expenditures, Private Closed Economy, Billions $290 330 370 410 450 490 530 570 billion Net exports = $ Equilibrium GDP=$ d. What is the multiplier in this example? (3) Exports, Billions billion $20 2222222 20 20 20 20 20 20 20 (4) Imports, Billions $40 40 40 40 40 40 40 40 (5) Net Exports, Billions (6) Aggregate Expenditures, Open Economy, BillionsQUESTION 16 The production and prices in a country in two subsequent years are described by the following table Year 1 Оuantity Year 2 Good Price Оиantity Price Apples Oranges $1.00 $1.00 60 55 40 45 y Where x is $1.91 and y is $1.28. What is the Real GDP growth rate (using year 2 as the base year) in percent terms? (Submit your answer with up to two decimals, i.e., -10.22 for -10.22% and 11.44 for 11.442%.)