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Exhibit: Quantity Consumed and Price of Good

 

 
  Base Year Later Year
Price of good A 100 200
Quantity of good A 100 200
Price of good B 100 100
Quantity of good B 100 100


Compute the GDP deflator(Paasche index) in the later year. (Input answer in bow in this manner: 2.665. Round up to 3 decimals)

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Related questions

Consider an economy that produces and consumes bread and automobilies , In the following table are data for two different years

YEAR 2000 YEAR 2000 YEAR 2010 YEAR 2010
GOOD QUANTITY PRICE QUANTITY PRICE
AUTOMOBILES 100 $50000 120 $60.000
BREAD 500.000 $10 400.000 $20

a)Using the year 2000 as the base year ,compute the following statistics for each year : nominal GDP ,real GDP ,the implicit price deflator for GDP ,and a fixed-weight price index such as the CPI

b)How much have prices risen between 2000 and 2010? Compare the answers given by the Laspeyres and Paasche price indexes. Explain the difference

c) Supopose you are a senator writing a bill to index Social Sewcurity and federal pensions. That is ,yout bill will adjust these benefits to offset changes in the cost of living. Will you use the GDP deflator or the CPI? Why?

Consider an economy that produces and consumes hot dogs and hamburgers. In the following table are data for two different years.

                           2010             2015
Good            Quantity Price Quantity Price
Hot dogs           200     $2      250     $4

Hamburgers      200     $3      500     $4

a. Using 2010 as the base year, compute the following statistics for each year: nominal GDP, real GDP, the implicit price deflator for GDP, and a fixed-weight price index such as the CPI.

b. By what percentage did prices rise between 2010 and 2015? Give the answer for each good and also for the two measures of the overall price level. Compare the answers given by the Laspeyres and Paasche price indexes. Explain the difference.

The town of York produces three goods, Good A, Good B, and Good C. The following is information regarding York's production of these three goods and their prices over 3 years. Use 2015 as a base year (i.e., 2015 = 100).

Year 2014 Year 2015 Year 2016

Quantity of Good A: 3 4 5

Price of Good A: $10 $10 $11

Quantity of Good B: 10 10 10

Price of Good B: $2 $4 $6

Quantity of Good C: 2 4 6

Price of Good C: $5 $6 $7

GDP questions:

1) What is the total money value of Good A that's produced in 2015?

2) Calculate the nominal (or current dollar) GDP for 2014.

3) Calculate the real (or constant dollar) GDP for 2014.

4) Calculate the real (or constant dollar) GDP for 2015.

5) What is the real economic growth rate from 2014 to 2015?

6) What is the real GDP per capita for 2014, assuming the population equals 10 individuals?

7) Calculate the GDP deflator for 2014, 2015, and 2016.

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