Homework 5

1 (aNominal gross domestic productFor cc8 1 (century 2 (50 100 100 two hundredFor cc9 1 (200 2 (100 200 200 cdFor 2010 2 (200 4 (100 four hundred cd 800Real gross domestic product (With 2008 as the base classFor 2008 1 (100 2 (50 100 100 200For 2009 1 (200 2 (100 200 200 400For 2010 1 (200 2 (100 200 200 400gross domestic product deflatorFor 2008 200 200 1For 2009 400 400 1For 2010 800 400 2 (b transpose from 2008 to 2009 adjustment in Nominal GDP 400 - 200 200 x100 100 exchange in Real GDP 400 - 200 200 x 100 100 Change in GDP deflator (1-1 /1 x 100 0The GDP deflator did not change . The answers make sense because this reflects the gravity of the improver of an item from iodine year to the next Change from 2009 to 2010 Change in Nominal GDP 800 - 400 400 x100 100 Change in Real GDP 400 - 400 400 x 100 0 Change in GDP deflator (2-1 /1 x 100 100The Real GDP did not change . The answers make sense because this reflects the gravity of the ontogeny of an item from one year to the next (c ) The GDP per capita is one of the items used to measure economic well-being . This is computed by dividing the state of the country . If the population is assumed constant , We evict withhold that in 2008 - 2009 , both the nominal and real GDP per capita change magnitude by 100 while in 2009 - 2010 , the real GDP per capita did not change at all . Hence it can be concluded that economic well-being rose more from 2008 - 2009 than from 2009 - 20102The consumer equipment casualty index is a number that measures the average price of consumer goods and profits that are purchased by households . This means that a cost-of-living index will be able to yield an idea of how much(prenominal) the actual value of a particular good is to a given populationThere are five steps to computing the consumer price index .

The first step is selecting an appropriate base year . A good selection would be a period that is economically , politically , and socially stable . A typical year of choice for many countries is the year 2000 . The second step is the intent of the trade basket . This basket consists of the goods and services that are or so commonly availed of by the population Typically , it is impossible to collate information on each and e rattling good and service and so the selection of what should be included in the market basket is limited . This makes the method and execution of selection very sensitive processes . The third step is to determine the Household purpose Patterns or weights . Weights refer to absolute differences in the importance that households give to the purchase of one good from another . After this has been through with(p) , the prices of items that have been included in the basket would be monitored . This ordinal step would provide an...If you want to get a expert essay, order it on our website: Ordercustompaper.com

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