If current prices are used to calculate the value of total output produced by a country during a specific period of time, the result is called: A) full employment GDP. OB) real GDP. C) nominal GDP. D) constant dollar GDP.
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- (a) The following table shows the outputs and prices of three products produced by an economy in 2018, 2019 and 2020. (i) Measure the nominal GDP, the real GDP and the GDP deflator in 2019 and 2020, taking 2018 as the base year.(ii) Using the GDP deflator, measure the inflation rate in the economy between 2018 and 2019, and also between 2019 and 2020. (b) Assume all household consumption items are locally produced as shown in the table in Question (a). A typical household in the economy consumes 5 units of rice, 4 units of shirt and 2 units of shoes in 2018. Using 2018 as the base year, measure the CPI for 2019 and 2020 and the inflation rate between 2018 and 2019, and also between 2019 and 2020. Explain why the inflation rate is different from those computed from (a)(ii).The consumer price index: a) tracks the value of output over time. b) is not tied to cost-of-living adjustments. c) doubles every five years in the economy. d) is a weighted average of consumer prices. e) is a broader price index measure than the implicit GDP deflator.The figure below graphs log GDP for periods t = 1, t = 2, t = 3, t = 4, and t = 5. log GDP log 115. log 110. log 108 log 105 log 100 2 3 4 5 time (a) Calculate the rate of growth of GDP between periods 2 and 3. (b) Calculate the slope of the red line in the figure. (c) What is the geometric average rate of growth of GDP between time 1 and time 5?
- For a good or service to be counted in a given year's gross domestic product (GDP), what four criteria must be met? have a market value, be a final good or service, be produced within a given country, and be produced within a certain time frame have a market value, be a final good or service, be produced within a given country, and be produced independent of any set time frame have a market value, be an intermediate or final good or service, be produced within a given country, and be produced within a certain time frame have a market value, be a final good or service, be produced within a given country or in another country with whom they have established trade relations, and be produced within a certain time frameGross domestic product per capita is the ratio of total gross domestic product to population.gross domestic product, a unit of timemonetary value of the final goods and services produced in the economy (let be in TL) and population, unitaccording to the number of people in that economy at the time,a) write down the unit of measure and size of the gross domestic product variable per capita. b) what is the relationship between gross domestic product per capita, total gross domestic product and population growth?Express your conclusions in a sentence by making inferenceAs per the World Bank, Philippine Real GDP (constant 2015 prices) was at around 396,220,000,000 USD in 2019. Meanwhile the GDP deflator for 2015-2019 is given as follows: Year Deflator 2015 100.00 2016 101.29 2017 103.66 2018 * 107.53 2019 108.28 Given this information, compute for the Nominal GDP for the Philippines in 2019.
- India’s GDP per capita increased from $310 in 1991 to $1,489 in 2012. (i) Calculate the average annual rate of growth of the Indian economy during this period using the arithmetic average. (ii) Calculate the geometric average annual growth rate of India during this period. Explain why the number you find in (ii) differs from the result obtained in (i).Nominal GDP (billions of cunent $) GDP defatar Population growth 101% Date 2007 $14,0618 10630 2008 143691 10n.62 0.93% 2009 14,129.0 109.61 2010 14,660.4 0S0% Use the data in the table above to calculate the economic growth rate for the United States from 2008 to 2009. Give your answer to two decimals. Note that all data is from the end of the year specified.The price and quantity data for Year 1 and Year 2 are as follows: Bread Butter 100 Year 1 Quantity 50 Year 1 Price 1 1 Year 2 Quantity 80 120 Year 2 Price 1.25 1.60 What is the ratio of real GDP in year 2 to real GDP in year 1, using year 1 as the base year?
- If the GDP deflator is greater than 100, thenA) nominal GDP is greater than real GDP.B) nominal GDP is lower than real GDP.C) nominal GDP equals real GDP.D) prices decreased by more than half between the current and the base years.The Prime Minister of your country has requested your assistance to analyze your country’s GDP for the past 5 years. He expects you to provide: i. A trend analysis and thoroughly explaining the primary reasons for growth or decline in GDP. ii. Three (3) recommendations on what can be done within your country to improve GDP. Provide examples and reference data. COUNTRY TO USE IS JAMAICABetween 1960 and 2018 U.S. GDP, measured in dollars of constant purchasing power, expanded about 5.0 times. However, the standard of living only increased by 4 times over this period. Explain the difference.