Calculate the realGDP in each year, assuming that the nominal GDP was $559 billion in the base year, $577 billion in year one, and $605 billion in year two; and that the price index rose from 100 to 104.5 in the first year, and up to 108.3 in the second year. If the price index 20 years before the base year was 41.2, and the no
Visit the Bureau of Economic Analysis Web site, http://www.bea.gov, and access the BEA interactively by selecting National Income and Product Account Tables. Select Frequently Requested NIPA Tables, and use Tables 1.1 and 1.2 to identify the GDP (nominal GDP) and realGDP for the past four quarters. Why was nominal GDP greater t
Can you tell me which statement is corrrect (if any) and why?
1. Actual aggregate expenditures does not always equal realGDP.
2. Planned investment exceeds actual investment when realGDP is greater than aggregate planned expenditures.
3. Actual investment exceeds planned investment when realGDP is less than aggregate
1. From the Bureau of Economic Analysis Web page (http://www.bea.gov), compare realGDP for 1960, 1970, 1980, 1990, and 2000.
(a) Show the percentage change in realGDP over each those decades.
(b) Do the percentages of GDP spent on consumption (C), investment (I), government (G), exports (X), imports ((M) differ signifi
In the economy of Cape Despair, the subsistence real wage rate is $15 an hour. Whenever realGDP per hour rises above $15 the population grows, and whenever the GDP per hour of labor falls below this level, the population falls. The table shows Cape Despair's production function:
What is the difference between realGDP and nominal GDP? Does GDP accurately reflect our nation's productivity? Why or why not? Is there a relationship between GDP and the business cycle? If so, what relationship exists and how might a business manager use this information to increase their profits?
Consider an economy where only three products x,y, and z are produced and sold for the prices indicated below:
Product;(Base year price);(Current year price);(Current year production)
X; $1; $2; 200
Y; $4; $5; 50
Z; $5; $6; 100
A. What are the values of nominal GDP and realGDP in the current year?
B. Explain the dif