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ID: 2429356 • Letter: #

Question

/execute/content/hile?cmd-view&contentid-;_663315 1& course id- 4372039 1 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2008 Prices and Quantities Quantity of Cereal 90 100 120 150 Price of Cereal Price of Milk 2008 2009 2010 2011 $4.00 $4.00 $5.00 $6.00 $1.50 $2.00 $2.50 $3.50 Quantity of Milk 150 180 200 6. Refer to Table 1. In 2008, this country's BUS 205 HWA#2 SNB nominal GDP was greater than real G nominal GDP was equal to real GDP, and the GDP deflator was equal to 1. nominal GDP was less than real GDP, and the GDP deflator was less than 100 nominal GDP was equal to real GDP, and the GDP deflator was equal to 100. a b. c. d. 7. Refer to Table 1. In 2009, this country's a. real GDP was $660, and the GDP deflator was 113.4 b. real GDP was $670, and the GDP deflator was 115.2 c. real GDP was $660, and the GDP deflator was 115.2 d. real GDP was $670, and the GDP deflator was 113.4 8. Refer to Table 1. In 2010, this country's a real GDP was $780, and the GDP deflator was 141.0 b. real GDP was $825, and the GDP deflator was 133.3 c. real GDP was $780, and the GDP deflator was 133.3 d. real GDP was $825, and the GDP deflator was 141.0 9. Refer to Table 1. In 2011, this country's a real GDP was $900, and the GDP deflator was 150.2 b. real GDP was $900, and the GDP deflator was 177.8 c. real GDP was $1065, and the GDP deflator was 177.8 d. real GDP was $1065, and the GDP deflator was 150.2. 10. Refer to Table 1. This country's inflation rate firom 2009 to 2010 was a. 16 4%. b. 24.3% 41.096. ?. d, 447%. 11. Refer to Table I. This country's inflation rate from 2010 to 2011 was a. b. C. d. 15.4% 26.196. 45.596. 77.896.

Explanation / Answer

Let Pc=price of cereal

Pm=Price of milk

QC=Quantity of cereal

Wm=Quantity of milk

6. In the base year the real GDP=Nominal GDP

Nominal GDP=Pc*QC+Pm*Qm

Nominal GDP=4*90+1.5*150=585

Real GDP=585

GDP Deflator=Nominal GDP/Real GDP=585/585=1

Answer-D