Question

QUESTION 10

Suppose the information in the following table is for a simple economy that produces only four goods and services: shoes, hamburgers, shirts, and cotton. Assume that shoes, hamburgers, and shirts are final goods and that all the cotton is used in the production of shirts. Calculate the GDP deflator for 2014. Use 2009 as the base year for the calculations.   Provide your answer as a number rounded to two decimal places. Do not include any symbols, such as "$," "=," "%," or "," in your answer.

	2009		2014		2015
Product	Quantity	Price	Quantity	Price	Quantity	Price
Shoes	74	$43	103	$57	112	$69
Hamburgers	77	2	106	4	98	4
Shirts	55	29	70	40	70	35
Cotton	55	6	70	14	70	17

Your Answer:Question 10 options:

Answer

Question 11 (1 point)

Suppose the GDP deflator for 2014 is 120 and the GDP deflator for 2015 is 134. What is the inflation rate?

Your Answer:Question 11 options:

Answer

Question 12 (1 point)

Suppose the information in the following table is for a simple economy that produces only four goods and services: shoes, hamburgers, shirts, and cotton. Assume that shoes, hamburgers, and shirts are final goods and that all the cotton is used in the production of shirts. Calculate the GDP deflator for 2015. Use 2009 as the base year for the calculations.   Provide your answer as a number rounded to two decimal places. Do not include any symbols, such as "$," "=," "%," or "," in your answer.

	2009		2014		2015
Product	Quantity	Price	Quantity	Price	Quantity	Price
Shoes	74	$42	104	$58	118	$69
Hamburgers	72	2	102	4	98	4
Shirts	55	25	70	43	70	39
Cotton	55	8	70	13	70	18

Your Answer:Question 12 options:

Answer

Question 13 (1 point)

Suppose the information in the following table is for a simple economy that produces only four goods and services: shoes, hamburgers, shirts, and cotton. Assume that shoes, hamburgers, and shirts are final goods and that all the cotton is used in the production of shirts. Calculate the growth rate in real GDP between 2014 and 2015. Use 2009 as the base year for the calculations.  Provide your answer as a percent rounded to two decimal places. Use a negative sign "-" for negative changes. Do not include any symbols, such as "$," "=," "%," or "," in your answer.

	2009		2014		2015
Product	Quantity	Price	Quantity	Price	Quantity	Price
Shoes	70	$42	98	$58	120	$66
Hamburgers	72	3	108	4	94	4
Shirts	55	26	70	41	70	35
Cotton	55	6	70	14	70	16

Your Answer:

Answer 1

1) Nominal GDP for 2009 = Output for final goods = output for shoes+output for hamburgers+output for shirts = (74*43)+(77*2)+(55*29) = $4931

Nominal GDP for 2014 = output for shoes+output for hamburgers+output for shirts = (103*57)+(106*4)+(70*40) = $9095

Real GDP for 2014 with 2009 as the base year = output for shoes+output for hamburgers+output for shirts = (103*43)+(106*2)+(70*29) = $6671

GDP deflator for 2014 = Nominal GDP for 2014/Real GDP for 2014 = 9095/6671 * 100 = 136.3

2) Inflation rate = 134-120*100 =11.67% where 2014 is held as base year.

3) Nominal GDP for 2015 = output for shoes+output for hamburgers+output for shirts = (118*69)+(98*4)+(70*39) = $11,264

Real GDP for 2015 when 2009 is the base year = output for shoes+output for hamburgers+output for shirts = (118*42)+(98*2)+(70*25) = $6902

GDP deflator for 2015 = Nominal GDP for 2015/Real GDP for 2009 = 11,264/6902 *100 = 163.2

4) Real GDP for 2014 with 2009 as the base year = output for shoes + output for hamburgers + output for shirts = (98*42)+(108*3)+(70*26)= $6260

Real GDP for 2015 with 2009 as the base year = (120*42)+(94*3)+(70*26)= $7142

Growth rate = (Real GDP for 2015-Real GDP for 2014)/Real GDP for 2014 *100 = (7142-6260)/6260 * 100 = 14%