1. Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 3 bars and the price is $ 4. In year 2, the quantity produced is 4 bars and the price $ 5. In year 3, the quantity produced is 5 bars and the price $ 6. Year 1 is the base year.

a). What is the nominal GDP for each of these three years?

b). What is the real GDP for each of these three years?

c). .What is the GDP deflator for each of these three years?

d). What is the percentage growth rate annual real GDP from year 2 to year 3?

e). What is the inflation rate measured by the GDP deflator from year 2 to year 3?

f). In this economy of a single good, as could you have responded to the paragraphs d) and e) without first answering b) and c)?

2. A farmer sows wheat, which he sells to a miller at $ 100. The miller turns the wheat

in flour, which he sells to a baker for $ 100. The baker turns the flour into bread, which

sells to consumers for $ 180. The consumers they eat the bread.

a). What is the GDP in this economy? Explain.

b). The added value is defined as the value of the production of a producer minus the value

of intermediate goods that the producer purchase to produce your product. Assuming that there are no intermediate goods besides of those described above, calculate the value

aggregate of each of the three producers.

c. What is the total added value of the three producers in this economy? .How I know

compared to the GDP of the economy? .This example suggests another way to calculate GDP?

3. Goods and services that are not sold in markets, such as food produced and consumed

at home, usually not included in GDP. Can you think of how this could make the numbers in the second column from table 3 are misleading in a comparison of the economic well-being of the United States with that of India? Explain.

4. The participation of women in the force United States workforce has increased

considerably since 1970.

a). How do you think this increase affected to GDP?

b). Now imagine a measure of well-being that include time spent working on home and leisure. How would the change in this measure of well-being with the change in GDP?

c). Can you think of other aspects of well-being that is associated with increased in the participation of women in the labor force? .It would be practical to develop a measure of well-being that includes these aspects?

5. One day, Barry the Barber, Inc. charges $ 400 for haircuts. Throughout that day the value Your team depreciates $ 50. Of the $ 350 remaining, Barry sends the government $ 30 in sales tax, takes home $ 220 in wages and retains $ 100 in your business to add new team in the future. Of the $ 220 that Barry takes home, pays $ 70 in taxes to entry. Based on this information, calculate the Barry's contribution to the following measures of income.

a). gross domestic product

b). net national product

c). national income

d). personal income

e). disposable personal income