question archive 1) The Island economy produces cars and books
1) The Island economy produces cars and books
Subject:EconomicsPrice: Bought3
1) The Island economy produces cars and books. The following table contains the quantities and prices of its products. Determine the growth rate in output for this country from 2006 to 2007 using 2006 as the base year. Show your work. Year 2006 2007 Quantity of Cars 200 300 Price of Cars $10,000 $20,000 Quantity of Books 60,000 80,000 Price of Books $40 $20 2. Use the expenditure approach equation to solve for the following problems. Show your work. a) In the economy of Ukzten in 2010, consumption was $3000, exports were $400, GDP was $5000, imports were $600, and investment was $1100. What were Ukzten's government purchases in 2010? b) In the economy of Ukzten in 2010, consumption was $2000, exports were $800, GDP was $4800, government purchases were $840, and investment was $1400. What were Ukzten's imports in 2010? c) In the economy of Ukzten in 2010, consumption was $6000, exports were $1000, GDP was $10,000, government purchases were $2000, and imports were $600. What was Ukzten's investment in 2010? 3. The following is the nominal and real GDP numbers for a particular country: Year Nominal GDP Real GDP 1997 $79,873.75 $76,786 1998 $92,614.80 $92,614.80 1999 $103,850 $108,440 a. Determine the GDP deflators for each of the years. Show your work. b. Find the percentage change in the price level from 1997 to 1998. Show your work. c. Find the percentage change in the price level from 1998 to 1999. Show your work 4. Determine whether the following statements are true or false. Explain your reasoning. a. Nominal GDP is a much more useful calculation in determine economic growth over time. b. GDP includes the value of all goods and services produced within a country's border. c. Over-reliance on GDP as measure of economic success can lead to short-term gains with long-term negative consequences for an economy. d. Comparing GDP across different countries is a good way to measure and compare the standard of living between countries.
