020.wpd (4) - Protected View . Saved to this PC v Search (Alt +Q) gn Layout References Mailings Review View Help om the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing ECONOMICS 101 PROBLEM SESSION #5 October 2022 I 1. In which category of Canada's GDP (C. I, G, X , M or N for none of the above) are each of the following transactions directly recorded in Canada's GDP? Some may require more than one answer. Make sure you indicate the correct negative or positive sign: a. A farmer hires some workers to grow tomatoes. b. The farmer sells some tomatoes to a grocery store. c. The farmer sells some tomatoes to a tourist from Ontario. d. The farmer sell some tomatoes to a tourist from Oregon. e. The farmer buys another acre of land so that he can expand tomato production. f. The farmer buys some fertilizer to help his tomatoes grow larger and faster. g. At the end of the year, the farmer discovers he has not used all the fertilizer that he bought. h. In the next year, the farmer uses the fertilizer he bought the previous year. i. A restaurant buys some of the tomatoes the farmer has grown. j. A tourist (from Japan) buys a tomato salad at the restaurant. k. The government buys some tomatoes (to feed to patients in the hospital). 1. The government gives the Vancouver foodbank some money (to help them feed the poor). 2. Price Indexes (2018 is the Base Year) In this simple economy, only 3 items are produced. ITEM A ITEM | B ITEM | C YEAR Price Quantity Price Quantity Price Quantity 2016 10 12 3 8 4 2017 12 11 2 9 5 6 2018 13 10 10 4 8 2019 14 9 11 a. Calculate the nominal GDP and the nominal growth rates from 2016 to 2019. b. Using 2018 as the base year, calculate the consumer price index and the inflation rate from 2016 to 2019 c. Using 2018 as the base year, calculate the real GDP (in 2010 $) and the real growth rate from 2016 to 2019. d. Using 2018 as the base year, calculate the GDP deflator and the inflation rate from 2016 to 2019. e. Of the above four years, which would be the best year to live in for the average consumer? 3. Nominal vs Real-Complete this table YEAR GDP in %4 GDP in %4 GDP Deflator %4 Current $ 2015 $ 2016 436.2 XXX a. XXX 124.2 XXX2017 12 11 2 9 a 2018 13 10 10 8 W / A 2019 14 9 11 a. Calculate the nominal GDP and the nominal growth rates from 2016 to 2019. b. Using 2018 as the base year, calculate the consumer price index and the inflation rate from 2016 to 2019 c. Using 2018 as the base year, calculate the real GDP (in 2010 $) and the real growth rate from 2016 to 2019. d. Using 2018 as the base year, calculate the GDP deflator and the inflation rate from 2016 to 2019. e. Of the above four years, which would be the best year to live in for the average consumer? 3. Nominal vs Real-Complete this table YEAR GDP in %4 GDP in %4 GDP Deflator %4 Current $ 2015 $ 2016 436.2 XXX a . XXX 124.2 XXX 2017 456.4 b. 346.9 C. d. e. 2018 f. g. h . 4.6% 135.0 1 . j. Which year had the highest average standard of living? Which figure did you use to determine this? k. Which year had the greatest increase in the average standard of living? Which figure did you use to determine this? 1. Which year had the highest inflation rate? m. Which year had the highest price level? 4. Suppose the nominal GDP increased by 4.6% while the GDP deflator increased from 105.8 to 112.8. What is the real growth rate? 5. If the GDP in 2002 prices went up 3.6% while the GDP in today's prices went from $2115.6 to $2289.1, what was the inflation rate? 6. The total population is 76.2 million. The unemployment rate is 9.2% and the participation rate is 74.2%. There are 45.0 million employed. a. What is the size of the labour force? b. How many people are unemployed? c. How many "non-participants" are there? d. What is the size of the civilian non-institutional population? e. How many people are unable to work? 7. If the economy grew from $562.9 bn to $822.6 bn over 15 years. what is the average annual growth rate? 8. If the annual interest rate is 3.8%, what is the promise that you will receive $4 million in 6 years worth today