HW_chap_5_additional_answers[1]

HW_chap_5_additional_answers[1] - real GDP 2000 (2000$) =...

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Econ 100 San Francisco State HW Chapter 5 You do not need to turn this problem in to me, but you can assume that there will be a problem very similar to it in either a quiz or an exam. It would greatly benefit your to do it. Table 1 shows some facts about an economy that only produces forks and spoons: Table 1: Facts about the fork and spoon economy 2000 2005 # of forks 15 20 price of forks $1.00 $1.25 # of spoons 13 17 price of spoons $3.25 $2.75 population 13 7 1) Calculate nominal GDP for 2000 and 2005. nominal GDP 2000 = 15 x $1.00 + 13 x $3.25 = $57.25 nominal GDP 2005 = 20 x $1.25 + 17 x $2.75 = $71.75 2) Calculate real GDP for 2000 and 2005 using 2000 as a base year
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Unformatted text preview: real GDP 2000 (2000$) = 15 x $1.00 + 13 x $3.25 = $57.25 real GDP 2005 (2000$) = 20 x $1.00 + 17 x $3.25 = $75.25 3) Calculate real GDP per capita using 2000 as a base year real GDP 2000 (2000$) per capita = $57.25/13 = $4.40 real GDP 2005 (2000$) per capita = $75.25/7 = $10.75 4) Calculate real GDP for 2000 and 2005 using 2005 as a base year real GDP 2000 (2005$) = 15 x $1.25 + 13 x $2.75 = $54.50 real GDP 2005 (2005$) = 20 x $1.25 + 17 x $2.75 = $71.75 5) Calculate real GDP per capita using 2005 as a base year real GDP 2000 (2005$) per capita = $54.50/13 = $4.19 real GDP 2005 (2005$) per capita = $71.75/7 = $10.25...
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