101-2011-PS1ans - Economics 101 Intermediate Macroeconomic...

This preview shows page 1 - 3 out of 3 pages.

Economics 101Marek KapiˇckaIntermediate Macroeconomic TheorySpring 2011Problem Set 1 Solution1Quantity and Price IndexesConsider an economy with two goods, beer and wine. Suppose that the prices andquantities sold at times 2007 and 2008 are the following:20072008PricesBeer1011Wine2010QuantitiesBeer87Wine361. Calculate nominal GDP for both years2007 nominal GDP = 10
2. Calculate the following measures of quantity:(a) Growth of Real GDP in 2007 prices
(b) Growth of Real GDP in 2008 prices
(c) Chain-Weighted Real GDP growth
1
3. Compute the following measures of price changes(a) GDP deflator growth based on Real GDP in 2007 prices

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture