Question
6. Using the following table, what was country A's GDP in 2019? (Show your equation and your work for full credit!) (For 1 point extra
6. Using the following table, what was country A's GDP in 2019? (Show your equation and your work for full credit!) (For 1 point extra credit, did they have a trade surplus or a trade deficit?)
The following table contains data for country A for the year 2019.
Household purchases of durable goods | $1,293 |
Household purchases of nondurable goods | $1,717 |
Household purchases of services | $301 |
Household purchases of new housing | $704 |
Purchases of capital equipment | $310 |
Inventory changes | $374 |
Purchases of new structures | $611 |
Depreciation | $117 |
Salaries of government workers | $1,422 |
Government expenditures on public works | $553 |
Transfer payments | $777 |
Foreign purchases of domestically produced goods | $88 |
Domestic purchases of foreign goods | $120 |
The following table contains data for country A for the year 2019.
7. Suppose the residents of Mediaville spend all of their income on books, CDs, and DVDs. In 2009, they buy 400 books for $3,200, 200 CDs for $1,400, and 100 DVDs for $900. In 2010, they buy 360 books for $3,240, 250 CDs for $1,500, and 125 DVDs for $1,250. Assume that the market basket for the CPI is defined in the base year.
A. Using 2009 as the base year, what is the CPI in each year?
B. Using 2009 as the base year, what is the inflation rate in 2010?
8. Why is productivity related to the standard of living? In your answer be sure to explain what productivity and the standard of living mean. Make a list of things that determine productivity.
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