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The table below represents the goods that are produced in Surrey. Bread and water are used by the citizens of the city. Half of all
The table below represents the goods that are produced in Surrey. Bread and water are used by the citizens of the city. Half of all plows are used by the city council, while the rest are used by citizens. Metal is used to produce plows and nothing more. When necessary, use 2013 as the base year. The typical consumer buys 10 bread, 100 water, and 2 plows. Use this table for questions 2 - 9. Bread Water Plows Metal Price Quantity Price Quantity Price Quantity Price Quantity 2011 $2 100 $1 1000 $150 30 $43 800 2012 $3 110 $1 1100 $200 35 $44 875 BASE 2013 $3 120 $1 1100 $200 35 70 $46 900 2014 $5 120 $2 1100 $210 20 40 $49 934 2. Calculate Real GDP for all years. (6 pts.) 3 . Calculate GDP deflator for all years. (6 pts.) Calculate the GDP growth rate for all adjacent years. (3 pts.) Calculate the basket costs for all years. (6 pts.) 6. Calculate CPI for all years. (6 pts.) 7. Calculate inflation for all adjacent years. (3 pts.) 8. In which year was water the most expensive in real terms? Show work. (10 pts.) 9. What was the real wage for Jakku's minimum wage of $8.25 in 2014? (4 pts.)
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