Suppose that in 1994 the total output in a single-good economy was 7,000 buckets of chicken. Also suppose that in 1994 each bucket of chicken was priced at $10. Finally, assume that in 2015 the price per bucket of chicken was $16 and that 22,000 buckets were produced. Instructions: In part a, enter your answer as an Index number rounded to 1 decimal place. In parts b-c, enter your answers as a whole number. a. What is the GDP price Index for 1994, using 2015 as the base year? b. By what percentage did the price level, as measured by this Index, rise between 1994 and 2015? percent c. What were the amounts of real GDP in 1994 and 2015? In 1994, real GDP-S In 2015, real GDP-S

Suppose that in 1994 the total output in a single-good economy was 7,000 buckets of chicken. Also suppose that in 1994 each bucket of chicken was priced at $10. Finally, assume that in 2015 the price per bucket of chicken was $16 and that 22,000 buckets were produced. Instructions: In part a, enter your answer as an Index number rounded to 1 decimal place. In parts b-c, enter your answers as a whole number. a. What is the GDP price Index for 1994, using 2015 as the base year? b. By what percentage did the price level, as measured by this Index, rise between 1994 and 2015? percent c. What were the amounts of real GDP in 1994 and 2015? In 1994, real GDP-S In 2015, real GDP-S

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider an economy that produces two goods, an agricultural good and a manufacturing good. An amount YA of the agricultural good can be produced using the following equation: YA = LA where LA is the amount of labor used in this sector. An amount of YM of the manufacturing good can be produced using the following equation: YM = KθLM 1-θ where K is capital stock and LM is the amount of labor used in such sector. So, this economy’s total output (i.e. GDP) is: Y = YA + YM. This economy has zero population growth rate (i.e. n = 0) and the depreciation rate is δ. The total number of workers in the economy is L and of course, L = LM + LA. Let P = LA/L. Furthermore, define: y = Y/L, k = K/L and c = C/L. As usual, we have: ∆k = sy – (δ+n)k. Please use the above information to derive the key equation for this version of Solow model. Show the steady state of the economy is a diagram with k as the x-axes. Label k* , y* and c* in your diagram.
25) Suppose that in 1984 the total output in a single-good economy was 10,000 buckets of chicken. Also assume that in 1984 each bucket of chicken was priced at $16. Finally, assume that in 2005 the price per bucket of chicken was $20 and that 22,000 buckets were produced. Instructions: In part a, enter your answer as an index number rounded to 1 decimal place. In parts b-c, enter your answers as whole numbers. a. What is the GDP price index for 1984, using 2005 as the base year? b. By what percentage did the price level, as measured by this index, rise between 1984 and 2005? c. What were the amounts of real GDP in 1984 and 2005?
Suppose that a country produces 200 million dollar value of total outputin a year. The country produces only two goods: pepperoni pizzas andbottles of soda. The price of a pepperoni pizza is $5 and the price ofa bottle of soda is $2. Draw the country’s iso-value line on a graph. Ifthe price of a pepperoni pizza increases to $8, what will happen to thecountry’s iso-value line?
Suppose that the table presented below shows an economy's relationship between real output and the inputs needed to produce that output: Input Quantity 300 225 150 Real GDP $400 300 200 Instructions: Enter your answers rounded to 2 decimal places. a. What is the level of productivity in this economy? b. What is the per-unit cost of production if the price of each input unit is $3? c. Assume that the input price increases from $3 to $4 with no accompanying change in productivity. What is the new per-unit cost of production? In what direction would the $1 increase in input price push the economy's aggregate supply curve? Click to select What effect would this shift of aggregate supply have on the price level and the level of real output? Both the price level and real output would remain the same. The price level would decrease and real output would remain the same.
Assume a specific factors economy produces two goods, cloth, and food, and that when representing the output of this economy graphically, the cloth is on the x-axis and food is on the y-axis. When the price of clothing increases by 4% and the price of food does not change does not change, a. labor shifts from the cloth sector to the food sector labor shifts from the cloth sector to the food sector. b. the wage rate rises by more than the increase in the price of cloththe wage rate rises by more than the increase in the price of cloth. c. the output of food fallsthe output of food falls. d. the real wage rates are unaffectedthe real wage rates are unaffected.
Consider a small country that produces and consumes only two goods: coffee and bananas. The quantity produced and price of each good in 2018 and 2019 are provided in the table below. Year 2018 Coffee Bananas Year 2019 Coffee Bananas The real GDP for year 2018 is: $ The real GDP for year 2019is: $ The growth of the real GDP is: Quantity % 650 pounds 300 pounds Quantity 700 pounds 330 pounds Price $5.5 per pound $0.4 per pound Assume that 2019 is the base year and round your response to two decimal places. (e.g. $963.45, 5.69%) The nominal GDP for year 2018 is: The nominal GDP for year 2019is: $ Price $6.0 per pound $0.5 per pound The GDP Deflator in 2018 is: The GDP Deflator in 2019 is: The inflation rate between the two years using the GDP deflator is. % Assume the average consumer buys 1 pound of coffee and 2 pounds of Bananas. Assume that 2019 is the base year and round your response to two decimal places. (e.g. $963.45, 5.69%) The consumer price index for 2018 is: The consumer price…
Again, please work with the following data set. It describes production of the only three goods made by Economy Zeta, along with their prices, for each of three years. Quantity Price of Quantity of Price of Quantity of Price of of Food Food Energy Energy Shelter Shelter 2018 800 $5 1000 $10 200 $100 2019 850 $6 1100 $12 240 $100 2020 850 $7 1200 $14 300 $100 Year Economists estimate that the average person in this economy consumes 12 units of food, 20 units of energy, and 2 units of shelter over the relevant period. 2018 is the base year. Using the GDP deflator, the inflation rate between 2018 and 2019 for this nation is ______________ percent. (Enter your answer "as a percent, but without the percentage sign." If you think the inflation rate is 99.99 percent, enter only 99.99 in the blank.)
Josel owns two fields: Green 4. Joint PPF and quantity restriction field and Blue field. He can produce corn and wheat. Green field has 80 acres, and it takes 10 acres to produce 1 bushel of corn and 20 acres to produce 1 bushel of wheat. Blue field has 100 acres, and it takes 20 acres to produce 1 bushel of corn and 10 acres to produce 1 bushel of wheat. Suppose that the government imposes a quantity restriction on only corn. Specifically, A quantity restriction of 4 bushels of corn in Green field. That is, Green field is allowed to produce at most 4 bushels of corn, and A quantity restriction of 2 bushels of corn in Blue field. That is, Blue field is allowed to produce at most 2 bushels of corn. (a) Sketch the joint PPF. Clearly label your graph (i.e., indicate values for slopes, intercept(s), endpoint (s), and kink(s)).
Suppose that the table presented below shows an economy's relationship between real output and the inputs needed to produce that output: Input Quantity Real GDP 150.0 $400 112.5 300 75.0 200 Instructions: Enter your responses answers rounded to 2 decimal places. a. What is the level of productivity in this economy? b. What is the per-unit cost of production if the price of each input unit is $2? 2$ C. Assume that the input price increases production? $2 to $3 wit no accompanying change in productivity. What the new per-unit cost of 2$ In what direction would the $1 increase in input price push the economy's aggregate supply curve? (Click to select) V What effect would this shift of aggregate supply have on the price level and the level of real output? O The price level would decrease and real output would remain the same. O The price level would increase and real output would decrease. O Both the price level and real output would remain the same. O The price level would decrease and…
If there are only two goods, apples and bikes produced in the economy; in 2015 total production of apples was 1000 tones and price of apple is $2 per tone; total production of bikes was 100 units and price of bikes was $500 per unit. in 2016 total production of apples was 1500 tones and price of apple is $3 per tone; total production of bikes was 110 units and price of bikes was $600 per unit. According to the information above, please calculate the cost of the basket in 2016. O a. 7500 O b. 7000 OC. 3500 O d. 3000
Production and consumption lie on the same isovalue line.’ Explain this statement with the help of a graph.
The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the associated flow of inputs and outputs. Firms Markets for Goods and Services Markets for Factors of Production Households Which of the following statements regarding this economic model are true? O While simple, the circular-flow diagram can still be useful for the purposes of modeling how dollars and resources move throughout an economy. O Because it does not take into account international trade, the circular-flow diagram is useless for the purposes of modeling how dollars and resources move throughout an economy. O Because, in reality, the economy is very large, the simplicity of the circular-flow diagram makes it useless for the purposes of modeling how dollars and resources move throughout an economy. O Because it does not take into account the role of government, the circular-flow diagram…