Question

In: Economics

Part 1 Calculate the missing values in the table below. Then answer the questions that follow...

Part 1

Calculate the missing values in the table below. Then answer the questions that follow it. GDP are in billions of dollars and the Consumer Price Index (CPI) is a percentage. CPI for 2001 is 98.6

Year Nominal GDP CPI RealGDP ri

2002 $10,469.58 Billion 100.0

2003 $10,971.34 Billion 102.3

2004 $11,734.30 Billion 105.0

2005 $12,601.00 Billion 108.6

All figures must be calculated to 2 decimal places and in the correct formats on a separate paper. You must show your work for all calculations in order to receive credit for the problem. DO NOT FILL IN THE TABLE. WORK PROBLEMS ON SEPARATE PAPER AND PRODUCE ANSWERS THERE!

a. Has there been any span of years, IN ONE YEAR INCREMENTS, within the table over which nominal GDP changed in one direction, but real GDP changed in the opposite direction? (Examples of what a span of years is, that are not included in this table would be 1990-1991 or 1996-1997.) Explain why or why not.

b. Has there been inflation over each span of years in the table? Explain why or why not.

Part 2

Exchange rate sample problems:

STARTING RATE LATER AFTER TIME HAS PASSED

a. Rate I: USD $1.54 = GBP £1.00 Rate II: USD $1.39 = GBP £1.00 PJeans (US Export) = USD $35.00 PSuit (UK Export) = £180.00

b. Rate I: USD $1.28 = EUR €1.00 Rate II: USD $1.45 = EUR €1.00

PDesk (US Export) = USD $345.00 PCoffee Maker (EU Export) = €50.00

c. Rate I: USD $1.00 = CNY 9.20元 Rate II: USD $1.00 = CNY 8.75 元

PBushel of Corn (US Export) = USD $45.00 PFlat-Screen TV (Chinese Export) = 12,500.00 元

Calculate the price of each nation’s exported good in terms of the other nation’s currency for BOTH EXCHANGE RATES (THERE WILL BE 4 CALCULATIONS IN EACH SECTION a, b, and c AS A RESULT). For Each Problem, based upon how the prices change from rate I to rate II, determine for each nation the impact on Net Export Spending,Total Spending, GDP, and AD. Make sure TO USE THE APPROPRIATE CURRENCY SYMBOLS FOR THE BRITISH POUND, THE EURO, AND THE CHINESE YUAN RENMINBI.

Expert Solution

Part 1:

Real GDP = Nominal GDP * (Base Year CPI / Current Year CPI)
= Nominal GDP * (98.6 / Current Year CPI)

ri = Inflation Rate = Percentage Change in CPI.

Year	Nominal GDP ($ Billion)	CPI	Real GDP ($ Billion)	ri
2001		98.60
2002	10469.58	100.00	10323.01	1.42%
2003	10971.34	102.30	10574.53	2.30%
2004	11734.30	105.00	11019.07	2.64%
2005	12601.00	108.60	11440.69	3.43%

(a) According to the calculations above, we can see that there is no opposite movements in the Nominal and Real GDP since CPI has changed in the same direction as the change in the Nominal GDP.

(b) Yes, there has been inflation over each span of years in the table. As we can see in the table above, there is a rise in the CPI depicting an inflation over the years.

Workings:

Rahul Sunny answered 8 months ago

Using the table below calculate the missing values.

Using the table below calculate the missing values.YearNominal GDPReal GDPGDP Deflator1 (2007)3,753____________812 (2008)4,5515,009____________3 (2009)5,150____________100.004 (2010)5,6665,255____________5 (2011)____________6,175 158Enter the missing values : the inflation/growth rates as indicated below.Inflation rate year 1-2 ____________Inflation rate year 3-4 ____________Real growth rate yr. 2-3 ____________Real growth rate yr. 4-5 ____________

Use the table below to calculate the answers to the questions that follow it. Be sure...

Use the table below to calculate the answers to the questions that follow it. Be sure to write how you are calculating your answer. You must include the numbers from the table when showing your work. The following table shows a sample of CSI students who are interested attending the “CSI has talent” show and whether they live on Staten Island. Results of a survey follow SI resident Interested- Yes Interested- No Total SI resident-Yes 100 70 170 SI resident-No...

Calculate and fill in the missing values in the table below Moon Distance from Jupiter Period...

Calculate and fill in the missing values in the table below Moon Distance from Jupiter Period Io 42 hours Europa 6.71105km Callisto 17 days Ganymede 1.07106km 172 hours

Values in the table below are approximate. Use these to answer the following questions and to...

Values in the table below are approximate. Use these to answer the following questions and to compare health impact of the two diseases. R-naught Incubation period Contagious Period COVID-19 2.5 10 days 2-3 days before symptoms to 10 days after Rabies 1.5 Several months From symptoms to 10 days after symptoms Recall that R-naught is the average number of additional cases that directly result from a single person bringing it into a fully susceptible community. Below, compare in the impact...

1) Use the table below to answer the questions that follow. Thermodynamic Quantities for Selected Substances...

1) Use the table below to answer the questions that follow. Thermodynamic Quantities for Selected Substances at 298.15 K (25 °C) __ Substance ΔH ° f (kJ/mol) ΔG ° f (kJ/mol) S (J/K-mol) Calcium Ca (s) 0 0 41.4 CaCl 2 (s) -795.8 -748.1 104.6 Ca 2 + (aq) 226.7 209.2 200.8 Chlorine Cl 2 (g) 0 0 222.96 Cl- (aq) -167.2 -131.2 56.5 Oxygen O 2 (g) 0 0 205.0 H 2O (l) -285.83 -237.13 69.91 Phosphorus P 2...

Future value of an annuity Using the values below, answer the questions that follow. (Click on...

Future value of an annuity Using the values below, answer the questions that follow. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Amount of annuity Interest rate Deposit period (years) $7,000 6% 6 a. Calculate the future value of the annuity, assuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in parts a(1) and a(2). All else being...

Refer to the information provided in Table below to answer the questions that follow. Employed 148,297...

Refer to the information provided in Table below to answer the questions that follow. Employed 148,297 Unemployed 8,705 What is the number of labor force What is the rate of unemployment What is the cost of unemployment (Explain just one point)? Why high rate of unemployment can be considered as one of biggest issues for the economy.?

refer to the table of data below and answer the questions that follow economic state probability...

refer to the table of data below and answer the questions that follow economic state probability of economic state return on stock J return on stock K bear 0.25 -0.02 0.034 normal 0.60 0.138 0.062 bull 0.15 0.218 0.092 calculate the expected return of each stock if a portfolio was created with from 30% of stock j and 70% of stock k what is the expected return of the portfolio? calculate the standard deviation of each stock? calculate the covariance...

Look at the Data Below then answer/calculate the totals in the questions that follow. (Show Workings)...

Look at the Data Below then answer/calculate the totals in the questions that follow. (Show Workings) Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers = $120,000 Utilities (electricity, water, disposal) costs = $8,000 Entrepreneur's potential economic profit from the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6,000 Answer these questions directly: a) Creamy...

Fill in the missing values in the table below given that , dy/dt = 0.8y -...

Fill in the missing values in the table below given that , dy/dt = 0.8y - 2 . t 0 1 2 3 4 y 8 ?? ?? ?? ??