In an economy, there are only two goods (Cars and cycles) produced. The data for last...

In an economy, there are only two goods (Cars and cycles) produced. The data for last three years is given in the below table. Calculate the nominal and real GDP of three years and then find the GDP deflator for all the three years. Find year on year (YoY) inflation for 2018 and 2019. Note: the base year for this economy is given as 2017.

year	Price of Car(AED)	Number of Car	Price of cycle (AED)	Number of cycle
2017	1000	10	200	900
2018	1200	15	210	1000
2019	1500	25	250	1500

Expert Solution

Rahul Sunny answered 9 months ago

In an economy, there are only two goods (Cars and cycles) produced. The data for last...

In an economy, there are only two goods (Cars and cycles) produced. The data for last three years is given in the below table. Calculate the nominal and real GDP of three years and then find the GDP deflator for all the three years. Find year on year (YoY) inflation for 2018 and 2019. Note: the base year for this economy is given as 2017. year Price of Car(AED) Number of Car Price of cycle (AED) Number of cycle 2017...

In an economy, there are only two goods (Cars and cycles) produced. The data for last...

In an economy, there are only two goods (Cars and cycles) produced. The data for last three years is given in the below table. Calculate the nominal and real GDP of three years and then find the GDP deflator for all the three years. Find year on year (YoY) inflation for 2018 and 2019. Note: the base year for this economy is given as 2017. year Price of Car(AED) Number of Car Price of cycle (AED) Number of cycle 2017...

A small economy produced and consumed only two goods (computers and pies) in Year 1 and...

A small economy produced and consumed only two goods (computers and pies) in Year 1 and Year 2, in the amounts shown in the table below. [Read the next sentence very carefully.] Year 1 is the base year for all calculation purposes in this question, and we also assume that the official market basket for the CPI is the actual mix of output produced in Year 1. Computers Pies Quantity Price Quantity Price Year 1 30 $1000 100 $10 Year...

Consider an economy that produces and consumes only two goods. In the following table are data...

Consider an economy that produces and consumes only two goods. In the following table are data for two different years. Assume 2015 as the base year. Year: 2015 2019 Goods Quantity Price Quantity Price Burgers 400 $3 600 $4 Pizzas 400 $4 300 $6 (a) Calculate nominal and real GDP for 2015 and 2019. By what percentage did real GDP increase between 2015 and 2019? What is the annual growth rate of the economy during this period? (b) What is...

1. Consider the following data for the following economy, where there only two goods: wine and...

1. Consider the following data for the following economy, where there only two goods: wine and cheese. In the following table are data for three different years. Use the first year, 2016, as the base year in calculating real GDP, the GDP deflator, and the CPI. 2016 2017 2018 P Q P Q P Q Wine $2.50 25 $3.50 30 $ 4.00 35 Cheese $7.00 20 $9.00 20 $ 10.00 25 a. Calculate the inflation rate b etween 2016 and...

Assume that you live in a simple economy in which only three goods are produced and...

Assume that you live in a simple economy in which only three goods are produced and traded: fish, fruit, and meat. Suppose that on January 1, 2010, fish sold for $3.50 per pound, meat was $4.00 per pound, and fruit was $2.50 per pound. At the end of the year, you discover that the catch was low and that fish prices had increased to $5.00 per pound, but fruit prices stayed at $2.50 and meat prices had actually fallen to...

In class, we developed a PPF for an economy that produced two goods with no factor...

In class, we developed a PPF for an economy that produced two goods with no factor substitution. This PPF gives some intuition for why the PPF in the the Heckscher-Ohlin Model is curved. a. Imagine an economy makes only clothes (QC) and food (QF) and has two inputs of production: Labor (L) and Capital (K). It takes 4 units of capital and 1 unit of labor to make one unit of clothing. It takes 1 unit of capital and 1...

1. Suppose that a simple economy produced only three goods: wheat, automobiles, and chairs. The table...

1. Suppose that a simple economy produced only three goods: wheat, automobiles, and chairs. The table below lists the quantity and prices for each of the goods for year 2000 and 2010. Based on table, answer the following questions Quantity produced in 2000 Price in 2000 Wheat 100 $5 Automobiles 200 $40,000 Chairs 400 $10 Calculate nominal GDP in year 2000. Suppose prices doubled by 2010 but production stayed the same. Calculate the nominal value of GDP in 2010. Suppose...

Consider the exchange economy. It consists of two individuals, A and B. The only two goods...

Consider the exchange economy. It consists of two individuals, A and B. The only two goods available for consumption are red wine and choco- late. The endowment of the economy is 64 units of red wine and 16 units of chocolate. A’s endowment is wa ? and ca ? ; B’s endowment is wb ? and cb ? . The utility functions for each individual are U = 2(wa ca )1/2 and UB = 10(wBcB)1/2, where wj and cj are...

Suppose that the British economy produces two goods: laptops and books. The quantity produced and the...

Suppose that the British economy produces two goods: laptops and books. The quantity produced and the prices of these items for 2015 and 2016 are shown in the table below: Year Quantities produced Price ($) 2015 Laptops = 60 Books = 1,000 Laptops = 200 Books = ? 2016 Laptops = 80 Books = ? Laptops = 90 Books = 12 Instructions:Round your answer to two decimal places. a. Let’s assume that the base year was 2015, so that real...

Question

In an economy, there are only two goods (Cars and cycles) produced. The data for last...

Solutions

Expert Solution

Related Solutions

In an economy, there are only two goods (Cars and cycles) produced. The data for last...

In an economy, there are only two goods (Cars and cycles) produced. The data for last...

A small economy produced and consumed only two goods (computers and pies) in Year 1 and...

Consider an economy that produces and consumes only two goods. In the following table are data...

1. Consider the following data for the following economy, where there only two goods: wine and...

Assume that you live in a simple economy in which only three goods are produced and...

In class, we developed a PPF for an economy that produced two goods with no factor...

1. Suppose that a simple economy produced only three goods: wheat, automobiles, and chairs. The table...

Consider the exchange economy. It consists of two individuals, A and B. The only two goods...

Suppose that the British economy produces two goods: laptops and books. The quantity produced and the...