Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

No missing info just a long question . Please help :) Suppose a simple economy produces four goods: military night vision goggles, hamburgers, pants, and

No missing info just a long question . Please help :)

image text in transcribed
Suppose a simple economy produces four goods: military night vision goggles, hamburgers, pants, and cotton. Due to the strict laws in the economy, only the government can purchase the military night vision googles. While both the hamburgers and pants are sold as final consumption goods to the households, all the cotton is used as an intermediate good to make the pants. Military Night Vision Goggles Hamburgers Pants Cotton 2018 PRICE $60 $2 $25 $0.60 2018 QUANTITY 100 100 50 800 2019 PRICE $75 $2.25 $25 $0.70 2019 QUANTITY 100 120 65 120 Calculate the fixed-weight real GDP in year 2018, using year 2018 as the base. Remember to include the $ symbol and round two decimal places. Calculate the fixed-weight real GDP in year 2019, using year 2018 as the base. Remember to include the $ symbol and round two decimal places. Calculate the fixed-weight real GDP in year 2018, using year 2019 as the base. Remember to include the $ symbol and round two decimal places. Calculate the fixed-weight real GDP in year 2019, using year 2019 as the base. Remember to include the $ symbol and round two decimal places. Calculate the chain-weighted growth rate between 2018 and 2019. Make sure to Include the % symbol and to round two decimal places Using 2018 as the base year, calculate the chain-weighted real GDP in 2018. Don't forget to put a $ with your answer and round two decimal places. Using 2018 as the base year, calculate the chain-weighted real GDP in 2019. Don't forget to put a $ with your answer and round two decimal places. Using 2018 as the base year, calculate the GDP Deflator in 2018. Don't forget to round two decimal places. Using 2018 as the base year, calculate the GDP Deflator in 2019. Don't forget to round two decimal places. Using 2018 as the base year, calculate growth rate in the GDP Deflator. Don't forget to round two decimal places and put the % symbol. Using 2018 as the base year, calculate the CPI in 2018. Don't forget to round two decimal places. Using 2018 as the base year, calculate the CPI in 2019. Don't forget to round two decimal places. Using 2018 as the base year, calculate growth rate in the CPI. Don't forget to round two decimal places and put the % symbol. Suppose the nominal interest rate in the economy is 5%. Using the inflation rate found in the growth rate in the price level for the CPI, what is the real interest rate in the economy? Don't forget to round two decimal places and put the % symbol. Based on your inflation rate from both the CPI and the GDP deflator, what is happening to the value of the dollar (increasing or decreasing?)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Mathematics

Authors: OpenStax

1st Edition

1711470554, 978-1711470559

More Books

Students also viewed these Economics questions

Question

An improvement in the exchange of information in negotiations.

Answered: 1 week ago