chapter 5 hw

# Chapter 5 hw - 2006-2007 the constant is quantity 5 a The growth rate from 1999-2000 is 6.5 B The growth rate of GDP deflator for 1999-2000 is 5 c

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4. a. For 2005, the nominal GDP is \$200 and the real GDP is also \$200. The GDP deflator for 2005 is 100. In 2006, the nominal GDP is \$400 and the real GDP is \$400 as well. The GDP deflator is therefore 100 for the year 2006. In 2007, the nominal GDP is \$800 and then real GDP is \$400 which makes the GDP 200. b. The percent change for the nominal GDP from 2005-2006 is 100% increase. From 2006-2007 the percentage change is also a 100% increase. The real GDP changes in 2005-2006 by a 100% increase. From 2006-2007 the real GDP remains the same. The GDP deflator calculates the percentage change to be 0 from 2005-2006. The percentage change from 2006-2007 is 100% increase. For 2005-2006 the constant is the price and for
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Unformatted text preview: 2006-2007 the constant is quantity. 5. a The growth rate from 1999-2000 is 6.5% B The growth rate of GDP deflator for 1999-2000 is 5% c. \$6103.67 (in billions) d. \$4463.79 e. -12.65% f. Lower, the real GDP rate was not a growth rate is shows losses. 8. a \$200 b.\$350 c,\$370 d.\$350 e.\$150 12. a. Women in the workforce has most likely increased the GDP drastically as more is being produced. b. The change in well being would decrease at a rate that the GDP increased. C. Exercise decreased as well. It would not be a practical interpretation of the GDP if well-being would be incorporated in the calculation....
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## This note was uploaded on 04/08/2008 for the course ECON 1002 taught by Professor Rissell during the Spring '08 term at Villanova.

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