Question

In: Economics

Below are some data from the land of milk and honey. YEAR       PRICE OF MILK       ...

Below are some data from the land of milk and honey.

YEAR       PRICE OF MILK        QUANTITY OF MILK    PRICE OF HONEY        QUANTITY OF HONEY

2001                $1                                100 Qts.                     $2                               50 qts.

2002                $1                                200                              $2                                100

2003                $2                                200                              $4                                100

1. Compute for each year the following below using 2001 as the base year.

a) nominal GDP

b) real GDP,and

c) the GDP deflator for each year, using 2001 as the base year.

2. Why do economists use real GDP rather than nominal GDP to gauge economic well being?

Solutions

Expert Solution

Rahul Sunny answered 8 months ago
Next > < Previous

Related Solutions

Below are some data from the land of milk and honey Year Price of Milk Quantity...
Below are some data from the land of milk and honey Year Price of Milk Quantity of Milk Price of Honey Quantity of Honey 2013 (Base yr) $1 100 quarts $2 50 quarts 2014 $1 200 $2 100 2015 $2 200 $4 100 Compute nominal GDP, real GDP, and the GDP deflator for each year, using the information from the above table. The base year is 2013. Consider an economy that produces only chocolate bars. In year 1, the quantity...
Below are some data from the land of milk and honey year price of milk quantity...
Below are some data from the land of milk and honey year price of milk quantity of milk price of honey quantity of honey 2016 $1 100 quarts $2 50 quarts 2017 1 200 2 100 2018 2 200 4 100 a. compute nominal GDP, real GDP, and the GDP deflator for each year, using 2016 as the base year b. compute the percentage change in nominal GDP, real GDP, and the GDP deflator in 2017 and 2018 from the...
Below are some data from the land of milk and honey Year Price of Milk Quantity...
Below are some data from the land of milk and honey Year Price of Milk Quantity of Milk Price of Honey Quantity of Honey 2016 $1 100 quarts $2 50 quarts 2017 1 200 2 100 2018 2 200 4 100 Compute nominal GDP, real GDP, and the GDP deflator for each year, using 2016 as the base year. Compute the percentage change in nominal GDP, real GDP and the GDP deflator in 2017 and 2018 from the preceding year....
year price per milk kg quantity of milk kg price of honey kg quantity of honey...
year price per milk kg quantity of milk kg price of honey kg quantity of honey 2011 1 100 2 50 2012 1 200 2 100 2013 2 200 4 100 compute the percentage change in nominal gap, real gap and the gap deflator in 2011 and 2012 from the preceding year. for each year, identify the variable that does not change. explain in words why your answer makes sense.
2. Consider the following data for a hypothetical economy that produces two goods, milk and honey....
2. Consider the following data for a hypothetical economy that produces two goods, milk and honey. Quantity Produced Prices Milk (litres) Honey (kg) Milk ($/litre) Honey ($/kg) Year 1 110 45 2 6 Year 2 125 40 3 7 Compute nominal GDP for each year in this economy. Using year 1 as the base year, compute real GDP for each year. What is the percentage change in real GDP from year 1 to year 2? Using year 1 as the...
Excess Supply from a Minimum Milk Price. In the equilibrium in the powdered milk market, the...
Excess Supply from a Minimum Milk Price. In the equilibrium in the powdered milk market, the quantity is 100 units and the price is $9.00 per unit. The price elasticity of demand is 0.80 and the price elasticity of supply is 2.50. Suppose the government imposes a minimum price of $9.90. Draw a graph to show the market effects of the minimum price.
Honey land analysis its aggregate consumer spending and aggregate disposable income and finds the following data....
Honey land analysis its aggregate consumer spending and aggregate disposable income and finds the following data. All numbers in the table are dollars. YD C $0 $100 100 180 200 260 300 340 500 500 Assume Honey land is a closed economy with no government spending, no taxes, and no transfers, Furthermore, assume the aggregate price level and interest rate are fixed in Honey land. 1. What does autonomous consumer spending equal in this economy? 2. What is the value...
The price of a gallon of milk at 16 randomly selected Arizona stores is given below....
The price of a gallon of milk at 16 randomly selected Arizona stores is given below. Assume that milk prices are normally distributed. At the α=0.10α=0.10 level of significance, is there enough evidence to conclude that the mean price of a gallon of milk in Arizona is less than $3.00? (Round your results to three decimal places) Which would be correct hypotheses for this test? H0:μ=$3H0:μ=$3, H1:μ≠$3H1:μ≠$3 H0:μ=$3H0:μ=$3, H1:μ>$3H1:μ>$3 H0:μ≠$3H0:μ≠$3, H1:μ=$3H1:μ=$3 H0:μ<$3H0:μ<$3, H1:μ=$3H1:μ=$3 H0:μ=$3H0:μ=$3, H1:μ<$3H1:μ<$3 Gallon of Milk prices: 2.85...
Are all colors equally likely for Milk Chocolate M&M's? Data collected from a bag of Milk...
Are all colors equally likely for Milk Chocolate M&M's? Data collected from a bag of Milk Chocolate M&M's are provided. Blue            Brown        Green          Orange       Red          Yellow 110                   47               52                 103            58                50 a. State the null and alternative hypotheses for testing if the colors are not all equally likely for Milk Chocolate M&M's. b. If all colors are equally likely, how many candies of each color (in a bag of 420 candies) would we expect to see? c. Is a...
Below is Hue’s Honey costs to make 17.5 oz. bottles for its Drinks: Hue’s Honey Cost...
Below is Hue’s Honey costs to make 17.5 oz. bottles for its Drinks: Hue’s Honey Cost of Making 17.5 Ounce Bottles Total Cost for 1,000,000 Bottles Cost per Bottle Direct materials $   85,000 $.085 Direct labor      30,000 .030 Variable factory overhead      60,000 .060 Fixed factory overhead      85,000 .085 Total costs $ 260,000 $ .26 1.Another manufacturer (JiffyK) offers to sell Hues Honey bottles for $.25. The capacity now used to make bottles will become sluggish if the...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT