assignment2answerkey

assignment2answerkey - Homework 2 Answer Key 1. a....

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Homework 2 Answer Key 1. a. Calculating nominal GDP: 2001: ($1 per qt. of milk × 100 qts. milk) + ($2 per qt. of honey × 50 qts. honey) = $200 2002: ($1 per qt. of milk × 200 qts. milk) + ($2 per qt. of honey × 100 qts. honey) = $400 2003: ($2 per qt. of milk × 200 qts. milk) + ($4 per qt. of honey × 100 qts. honey) = $800 Calculating real GDP (base year 2001): 2001: ($1 per qt. of milk × 100 qts. milk) + ($2 per qt. of honey × 50 qts. honey) = $200 2002: ($1 per qt. of milk × 200 qts. milk) + ($2 per qt. of honey × 100 qts. honey) = $400 2003: ($1 per qt. of milk × 200 qts. milk) + ($2 per qt. of honey × 100 qts. honey) = $400 Calculating the GDP deflator: 2001: ($200/$200) × 100 = 100 2002: ($400/$400) × 100 = 100 2003: ($800/$400) × 100 = 200 b. Calculating the percentage change in nominal GDP: Percentage change in nominal GDP in 2002 = [($400 - $200)/$200] × 100 = 100%. Percentage change in nominal GDP in 2003 = [($800 - $400)/$400] × 100 = 100%. Calculating the percentage change in real GDP: Percentage change in real GDP in 2002 = [($400 - $200)/$200] × 100 = 100%. Percentage change in real GDP in 2003 = [($400 - $400)/$400] × 100 = 0%. Calculating the percentage change in GDP deflator: Percentage change in the GDP deflator in 2002 = [(100 - 100)/100] × 100 = 0%. Percentage change in the GDP deflator in 2003 = [(200 - 100)/100] × 100 = 100%.
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

assignment2answerkey - Homework 2 Answer Key 1. a....

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online