ECO 108 Spring 2011 Test #2 Version A KEY

# ECO 108 Spring 2011 Test #2 Version A KEY - ECO 108.01 0.10...

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ECO 108.01 – 0.10 Spring 2011 Test #3 Version A KEY Show your work and clearly indicate your answer! The # in ( ) before each question or part of a question is its point value. (16)1. The country of Oz produces only 2 final goods, Good X and Good Y. The first of the following tables shows the annual levels of Good X and Good Y production and their prices for 2010. The second table shows the same information for Oz for 2011. Use 2011 as the base year. For calculating the CPI, the market basket is 2 units of Good X and 1 unit of Good Y . Good Quantity Produced (2010) Price (2010) Good X 10 \$5.00 Good Y 20 \$10.00 Good Quantity Produced (2011) Price (2011) Good X 15 \$6.00 Good Y 20 \$10.00 (3)a. Find Oz’s nominal GDP for 2011. \$290 (4)b. Find Oz’s real GDP for 2010. \$260 (3)c. Find the rate of economic growth for Oz from 2010 to 2011. 11.5% (3)d. Find Oz’s CPI for 2010. 90.9 (3)e. Find the rate of inflation for Oz from 2010 to 2011. 10% (8)2. Suppose the year 2010 is the base year for calculating a country’s Real GDP. Moreover, the country’s RGDP in 2010 was \$5,000. (4)a. Suppose the country’s physical output of final goods doubled from 2010 to 2011 while the prices of all of those goods remained unchanged. i.

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ECO 108 Spring 2011 Test #2 Version A KEY - ECO 108.01 0.10...

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