Answered: Calculate GDP deflator if real GNP is…

Business

Economics

Calculate GDP deflator if real GNP is $47,000 and the nominal GNP is $60,000

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter19: Measuring Economic Performance

Section: Chapter Questions

Problem 2P: Which of the following are included in GDP calculations? a. Cleaning services performed by Molly...

See similar textbooks

Related questions

Q: diffrenciate between Nominal and real GDP.

A: In economics, gross domestic product (GDP) is one of the economic tools that is used to determine…

Q: Double counting can be avoided by: Including the value of intermediate goods in the current year. O…

A: If the value of intermediate goods is not counted in GDP then double counting could be avoided.

Q: In an economy, Real GDP (base year = 1996) is $125 billion and the Nominal GDP is $150 billion.…

A: GDP deflator formed to estimate the inflation .In the other way it is known as the implicit price…

Q: Does GDP clearly signal a change in the level of welfare of individuals?

A: GDP of a country estimates all the transactions within the boundary of a country. It is considered…

Q: If Gdp deflator is equal at 90 it means that : 1- stagflation 2- deflation 3- inflation…

A: The GDP deflator measures the changes in prices for all of the goods and services produced in an…

Q: If nominal GDP rises from $100 trillion to 20 trillion, while the GDP deflator rises from 2.0 2.2,…

A: Real GDP is used to compute economic growth. The percentage change in real GDP is the GDP growth…

Q: Why do economists use real GDP rather than nominal GDP to gauge economic well-being? Define "Real"…

A: The Gross Domestic Product is the summation of the money value of all the final goods and services…

Q: Given the information in the attached table, if 2025 is the base year, what is the GDP deflator in…

Q: . What is the difference between GDP and each of the following? a. Gross national…

A: Note : Since we only answer up to 3 sub-parts, we'll answer the question specified. Please resubmit…

Q: Explain concisely whether the following statement is true or false: “The GDP of a country does…

A: Answer: The given statement is false. Explanation: GDP (gross domestic product): GDP refers to the…

Q: Which of the following statements about GDP and GNP is WRONG? Cars produced in Canada using US…

A: We have to find GDP and GNP.

Q: which of the following transactions is exclued from GDP? a. the brazilian air force buys jets from…

A: Just recently delivered products - including those that expansion inventories - are included in GDP.…

Q: If nominal GDP rises from $100 trillion to $120 trillion, while the GDP deflator rises from 2.0 to…

A: Real gross domestic product is a macroeconomic measure of the value of economic output adjusted for…

Q: If we denote nominal GDP as Y and nominal gross output as Z, what formulas would you use to…

A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…

Q: Show how gross national product (GNI) can be derived from gross domestic product (GDP).

A: Note: The second question mentioned in the picture is derivation of GNP from GDP. 2. Gross Domestic…

Q: What is the difference between GDP and GNP?

A: ‘GDP’ is the value of all goods & services produced in an economy in a period of time. ‘GNP’ on…

Q: Why is real GNP/GNI per capita considered a better measure of Irish living standards in recent…

A: The degree of wealth, comfort, material things, and requirements accessible to a certain social…

Q: Comment on the limitations of using GDP as a way of measuring economic well-being

A: Introduction (GDP)Gross domestic product is a monetary measure of the market value of all final…

Q: Compute the values of real GDP and GDP deflator in 2018 and 2019 (using 2017 as the base year).

A: When we calculate the total value of output at the base year price it is called Real GDP.

Q: GDP

A: All the goods and services’ values produced within a duration and inside the country’s boundary…

Q: Why the use real GDP is preferred by economists over nominal GDP to gauge economic well-being? (100…

A: Real GDP is the GDP which the economy is actually producing ie after the inflation has been taken…

Q: Suppose that the UK’s nominal GDP in 2018 was £2.1 billion, while the GDP in real terms for 2018 is…

A: Nominal GDP = 2.1 billion Real GDP = 1.4 billion

Q: If Gdp deflator is equal at 120 it means that : 1- stagflation 2- deflation 3- inflation…

A: The GDP price deflator measure the changes in prices by comparing nominal GDP to real GDP.

Q: A mining company acquires new government licenses to drill in land the company already owns. Is…

A: Yes. If a mining company acquires new government licenses to drill in land the company already owns.…

Q: Which of the following would NOT be included in GDP? US manufacturer making goods in Europe Final…

A: Which of the following would NOT be included in GDP? The answer is Option A - US manufacturer making…

Q: GDP can be calculated by all of the following methods except...

A: GDP is the measure of all the final goods that are produced in a country. It includes the quantities…

Q: GDP deflator

A: The value of all the goods and services are accounted within a year depicts the GDP (Gross Domestic…

Q: GDP includes the value of final goods, and not intermediate goods, because:

A: GDP calculate only value of final good.

Q: Define GDP and distinguish between a final good and an intermediate good. please provide examples.

A: GDP stands for gross domestic product. It is the market value of all the final goods and services…

Q: If the nominal GDP is stated as 190 and the Real GNP is 10 find the GNP deflator

A: Basically in easy language we can say that the GNP deflator is considered to be as that price index…

Q: Identify whether the following items are officially included in 2019 GDP or Not. Give specific…

A: HI, We can only answer 1 question ( up to 3 sub-parts) per session. I'm going to answer a,b and c.…

Q: List some of the reasons why economists should not consider GDP an effective measure of the standard…

A: Standard of living is the element that affects the happiness of people, either these elements are…

Q: GDP rises from $5.5 trillion in 2014, the base year, to $9.5 trillion in 2018. The GDP deflator in…

A: Nominal GDP = Current Year Prices * Current Year Quantities Real GDP = Base Year Prices * Current…

Q: Which of the following transactions would be included in GDP? a. Abeer buys a newly constructed…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Distinguish the difference between nominal GDP and real GDP

A: GDP (gross domestic product) is the total value of goods & services manufactured in an economy…

Q: Compare and contrast GDP versus GNP. Provide an example of each. Based on the data provided,…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Explain three limitations in measuring the real GDP

A: The gross domestic product (GDP) is the standard measure of value-added produced during a certain…

Q: Distinguish Nominal GDP and Real GNP with example?

A: Economists use real GDP rather than nominal GDP to measure economic health because real GDP is…

Q: An economist, measuring GDP, first counted the value of aluminum created by an aluminum producer and…

A: GDP is the market value of final goods and services produced by an economy during a given period of…

Q: Identify whether the following items are officially included in 2019 GDP or Not. Give specific…

A: GDP: It means monetary or market value of all the finished goods and services that are produced…

Q: Explain the difference between GDP and GNP with an example.

A: GDP includes the values of only final goods thus it excludes the value of intermediate goods.

Q: Explain the difference between GDP and GNP. If the residents of Oman generate as much production in…

A: GDP (gross domestic product) of a country is the market value of all final commodities and services…

Q: Explain the difference between GDP and GNI.

A: Gross Domestic Production is the total monetary of all the finished goods and services which are…

Q: A Chinese restaurant buys 100 cups of rice for a total of $10; they buy soy, fish and oyster sauces…

A: Gross domestic product is the value of all the final goods and services produced in the country in a…

Question

Calculate GDP deflator if real GNP is $47,000 and the nominal GNP is $60,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Find Nominal GDP if GDP deflator is 136 and real GDP is $16,000
Calculate GDP deflator for 2020
Define GDP
Compute the values of real GDP and GDP deflator in 2018 and 2019 (using 2017 as the base year)
In Macronesia the GDP deflator for 2006 is 105 ( with 2005 being the base year). If the real GDP in 2006 equals 210 billion, the nominal GDP in 2006is equal to $200 billion. Not enough information given. $220.5 billion. $ 210
If the nominal GDP is stated as 190 and the Real GNP is 10 find the GNP deflator?
Calculate net Exports if exports is $3000 and imports is $2200
In an economy, Real GDP for year 2002 (base year = 1996) is $200 billion and the GDP deflator 2002 (base year = 1996) is 120. Calculate the Nominal GDP for 2002.
In an economy, Nominal GDP for year 2005 (base year = 1996) is $60 billion and the GDP deflator 2005 (base year = 1996) is 120. Calculate the Real GDP for 2005.
If Gdp deflator is equal at 90 it means that : 1- stagflation 2- deflation 3- inflation 4- stability
Suppose the information in the following table is for a simple economy that produces only four goods and services: shoes, hamburgers, shirts, and cotton. Assume that shoes, hamburgers, and shirts are final goods and that all the cotton is used in the production of shirts. Calculate the GDP deflator for 2015. Use 2009 as the base year for the calculations. Provide your answer as a number rounded to two decimal places. Do not include any symbols, such as "$," "=," "%," or "," in your answer.
You just bought an old car a couple years ago for $1,000 and put about $5,000 of parts and labor into improving it. You sold it yesterday for $3,000. How does this sale affect GDP?