Homework 2 part 2

# Homework 2 part 2 - 17 Lets consider some data on nominal...

• Homework Help
• 9
• 100% (7) 7 out of 7 people found this document helpful

This preview shows pages 1–4. Sign up to view the full content.

17. Let’s consider some data on nominal GDP and GDP price deflator from the Federal Reserve Database: Nominal GDP (billions of dollars) GDP price deflator April 4, 2013 \$16667.9 106.294 Using the data in the table above, real GDP is equal to \$__________. A) 1771697.76 B) 15680.94 C) 156.81 D) 15.68 Table for Individual Question Feedback Points Earned: 3.0/3.0 Correct Answer(s): B 18. During the 1973-1975 recession, GDP growth was about -3% and the percent change in prices was about 13%. This combination of GDP growth and percent change in prices is referred to as: Table for Individual Question Feedback Points Earned: 3.0/3.0 Correct Answer(s): C 19. Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to understate the true extent of joblessness?

This preview has intentionally blurred sections. Sign up to view the full version.

Table for Individual Question Feedback Points Earned: 3.0/3.0 Correct Answer(s): B 20. Use the table below to answer questions 20-23 The table below shows the ‘hypothetical’ basket(s) of consumption goods for a 'typical' Penn State college student for 2012 and 2013. 2012 Basket for ‘typical PSU college student’ 2013 Basket for ‘typical PSU college student’ Item Price Quantity Item Price Quantity Textbooks \$80 6 Textbooks \$90 6 Rent \$700 1 Rent \$800 1 PSU sporting events \$15 6 PSU sporting events \$20 3 Dinners in State College \$25 6 Dinners in State College \$25 8 Assume 2012 is the base year. The rate of inflation between 2012 and 2013 is ____%. NOTE: calculate the rate of inflation using price indexes.

This preview has intentionally blurred sections. Sign up to view the full version.

This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern