A.F. ECONOMICS
GDP Calculations
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A.F. ECONOMICS GDP Calculations
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Measuring the Standard of Living In each exercise below, fill in the blanks in the tables. Remember that in the base
year, real GDP is always equal to nominal GDP. Real GDP in the current year is nominal GDP times the
ratio of the price in the base year to the price in the current year. 1. The economy produces only wheat. Year Price of Wheat Nominal GDP Real GDP Base Year $0.20 per bushel $46 billion Next Year $0.25 per bushel $55
billion 2. The economy produces only
hamburgers Year Price per Hamburger Nominal GDP Real GDP Base Year $2.50 $1 million Next Year $1.25
million $1.2
million 3. The
economy produces only Yoga classes Year Price per Class Nominal GDP Real GDP Base Year $40 million Next Year $55.00 $44 million $40
million 4. The
economy produces only ice cream. Year Price per gallon Nominal GDP Real GDP Base Year $20 million Next Year $3.00 $30 million $18 million In the following problems,
2000 is the base year. 5. The economy produces hamburgers and hot
dogs. Remember that the value of real sales of a good in the current year equals its nominal sales
times the ratio of its price in the base year to its price in the current year. Total real GDP is
the sum of real sales of hamburgers plus real sales of hot dogs. Year Price of Price
of Sales of Sales of Nominal
GDP Real GDP Implicit Deflator burgers hot dogs burgers hot
dogs 2000 $2.00 $2.50 $8
bill $11 bill 2001 $3.00 $3.00 $11
bill $14 bill 6. The
economy produces chewing gum and earrings. Year Price of Price of Sales
of Sales of Nominal GDP Real
GDP Implicit Deflator gum earrings gum earrings 2000 $1.00 $40.00 $1.5
mill $50 mill 2001 $1.04 $43.00 $53.1
mill $56.3 mill 7. The economy produces t-shirts
and bracelets. Year Price of Price
of Sales of Sales of Nominal
GDP Real GDP Implicit Deflator shirts bracelets shirts bracelets 2000 $19.00 $20
bill $65
bill 2001 $15.00 $20.00 $30
bill $40 bill 1.05 |
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