ECO202
Extra Questions for Week 2
1. Use the table below to answer the following questions
|
|
Pc
|
Qc
|
Pf
|
Qf
|
|
2021
|
1000
|
10
|
4
|
500
|
|
2022
|
10
|
1200
|
5
|
510
|
(a) Calculate the nominal GDP for the years 2021 and 2022.
(b) Calculate the real GDP for the year 2022, using the year 2021 as the base year.
(c) Calculate the real GDP for the year 2021, using the year 2022 as the base year.
(d) Calculate the real GDP growth using the prices from the year 2021.
(e) Calculate the real GDP growth using the prices from the year 2022.
(f) What accounts for the substantial disparity between the two growth rates?
2. Consider in an economy with two consumption goods and two investment goods, use the table and answer the question below:
PC 1 QC 1 PC2 QC2 PI1 QI1 PI2 QI2
|
2012
|
11
|
110
|
18
|
50
|
22
|
11
|
52
|
11
|
|
2013
|
12
|
130
|
22
|
52
|
23
|
12
|
47
|
15
|
(a) Calculate the real consumption, real investment and real GDP, using the price in 2012.
(b) Calculate the real consumption, real investment and real GDP, using the price in 2013.
(c) Calculate the Laspeyres, Paasche, and Fisher price indices for the change in real consumption, real investment, and real GDP from 2012 to 2013.
(d) Calculate Real consumption, Real investment and Real GDP in chained prices, benchmarked to 2013.
(e) Sum the real consumption and real investment and compare it to the real GDP.