Let's measure consumer surplus if the government imposes price controls and goods endup being randomly allocated among those consumers willing to pay the controlled price. If the demand and supply curves are as in the figure, then:

a.What is consumer surplus under the price control? b.What would consumer surplus be if the quantity suppliedwere 1,000 but the goods were allocated tothe highest-value users?

2-Calculate the annual growth rate of nominal GDP in the following examples:

Nominal GDP in 1930: $97 billion. Nominal GDP in 1931: $84 billion.

Nominal GDP in 1931: $84 billion.Nominal GDP in 1932: $68 billion.

Nominal GDP in 2000: $9,744 billion. Nominal GDP in 2001: $10,151 billion. _{(Source:Historical Tables, Budget of the United States Government,Congressional Budget Office)}

3-

U.S. GDP is approximately $22 trillionandthe U.S. population is approximately 330 million. If GDP were divided equally among the U.S. population what would each person get? If you and your nine best friends took almost all U.S. GDP for yourself but gave $3,000 per person to everyone else, how much would you get each year, just for yourself?

4-Calculate GDP in this simple economy:

Consumer purchases: $200 per year Investment purchases: $100 per year Government purchases: $40 per year Total exports: $100 per year Total imports: $140 per year

5-Consider the following tablesathree-good economy

Table :1

Good	2007 Output	2007 Price	Market Value
Pizza(pies)	500	$8	$----------
Beer(cases)	1,000	4	-----------
Cigars(packs)	200	10	----------
2007----------GDP =-----------
Table 2
Good	2008 Output	2008 Price	Market Value
Pizza(pies)	400	$12	$4,800
Beer(cases)	800	5	4,000
Cigars(packs)	200	11	2,200
2008-----------GDP =------------

Table3:

Good	2008 Output	2007 (base year) Price	Market Value
Pizza(pies)	400	$8	$--------
Beer(cases)	800	4	--------
Cigars(packs)	200	10	--------

2008-----------GDP(in 2007 dollars)= ----------

a-Complete theabove three tables.For thespacebetween theyears andGPDfill in withReal or Nominal b-Computeandinterpretthe GDPdeflatorfor year 2008