# May very well rise if we assume the fathers and the

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may very well rise if we assume the fathers and the children enjoy the extra time they are spending together. 8. Consider an economy that produces and consumes hot dogs and hamburgers. In the following table are data for two different years. a. Using 2010 as the base year, compute the following statistics for each year: nominal GDP, real GDP, the GDP deflator, and the CPI (for the CPI, assume the quantities in 2010 are the fixed basket of goods). b. By what percentage did prices rise between 2010 and 2015? Give the answer for each of the two measures of the overall price level. Compare the answers given by using the GDP deflator and CPI price indexes and explain the difference.GoodQuantity 2010Price 2010Quantity 2015Price 2015 Hot dogs200\$2250\$4 Hamburgers200\$3500\$4
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9. Explain how each of the following would be dealt with in GDP for the current year. a. The first time sale of a newly built house. b. The resale of a house that was built 30 years ago. c. The rent paid by a tenant to a landlord. d. A homeowner deciding to live in his house rather than renting it.
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10. In your opinion, how useful is GDP (per person) as a measure of the overall well-being of the citizens of a country? Please explain.
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