1. Suppose that a farmer grows wheat, which she sells to a miller for $10.

The miller turns the wheat into flour, which she sells to a baker for $55.

The baker turns the wheat into bread, which she sells to consumers for $140.

Consumers eat the bread.

What is GDP in this economy?

2. Consider the following table showing the breakdown of GDP (in billions) for China.

GDP Category	Amount (in billions)
Consumption	1700
Investment	700
Government Expenditure	100
Exports	50
Imports	40

Using the expenditure approach, calculate GDP for China.

3. Consider the following table showing the breakdown of GDP (in billions) for China.

GDP Category	Amount (in billions)
Wages and Salaries	1000
Consumption	1700
Investment	700
Depreciation	50
Government Expenditure	100
Taxes	300
Exports	50
Imports	40
Income receipts from rest of the world	10
Income payment to rest of the world	50

What are net exports for China?

4. Suppose that GDP in Japan is 1030 and then grows to 1160 (all numbers in billions)

What is the growth rate of GDP in Japan?

Use the following information to answer questions 5 through 15:

The tables below show data on prices and quantities of Oranges and Shoes produced in China.

Data for 2014

Price of Oranges	Quantity of Oranges	Price of Shoes	Quantity of Shoes
0.7	200	10	270

Data for 2015

Price of Oranges	Quantity of Oranges	Price of Shoes	Quantity of Shoes
0.9	150	14	250

Data for 2016

Price of Oranges	Quantity of Oranges	Price of Shoes	Quantity of Shoes
1.4	300	15	330

5.Given this data, what is the Nominal GDP in 2014?

6. What is the Nominal GDP in 2015?

7. What is the Nominal GDP in 2016?

8. Using 2014 as the base year, what is the Real GDP in 2014?

9. Using 2014 as the base year, what is the Real GDP in 2015?

10. Using 2014 as the base year, what is the Real GDP in 2016?

11. Using 2014 as the base year, what is the GDP Deflator in 2014?

12. Using 2014 as the base year, what is the GDP Deflator in 2015?

13. Using 2014 as the base year, what is the GDP Deflator in 2016?

14. Using 2014 as the base year, what is the growth rate of the GDP deflator (also know as inflation rate) between 2014 to 2015?

15. Using 2014 as the base year, what is the growth rate of the GDP deflator (also know as inflation rate) between 2015 to 2016?