{"id":12252,"date":"2022-04-12T16:35:06","date_gmt":"2022-04-12T16:35:06","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/?post_type=chapter&p=12252"},"modified":"2024-09-11T16:41:48","modified_gmt":"2024-09-11T16:41:48","slug":"module-6-assignment-problem-set-gdp-and-economic-growth","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-macroeconomics\/chapter\/module-6-assignment-problem-set-gdp-and-economic-growth\/","title":{"raw":"Module 6 Assignment: Problem Set \u2014 GDP and Economic Growth","rendered":"Module 6 Assignment: Problem Set \u2014 GDP and Economic Growth"},"content":{"raw":"You can click on the following link to download the problem set for this module:\u00a0GDP and Economic Growth Problem Set.<\/a>\r\n

GDP and Economic Growth Problem Set[1]<\/strong><\/a><\/sup><\/h2>\r\n
    \r\n \t
  1. Suppose that a farmer grows wheat, which she sells to a miller for $10.<\/li>\r\n<\/ol>\r\n

    The miller turns the wheat into flour, which she sells to a baker for $55.<\/p>\r\n

    The baker turns the wheat into bread, which she sells to consumers for $140.<\/p>\r\n

    Consumers eat the bread.<\/p>\r\n

    What is GDP in this economy?<\/p>\r\n \r\n

      \r\n \t
    1. Consider the following table showing the breakdown of GDP (in billions) for China.<\/li>\r\n<\/ol>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
      GDP Category<\/strong><\/td>\r\nAmount (in billions)<\/strong><\/td>\r\n<\/tr>\r\n
      Consumption<\/td>\r\n1700<\/td>\r\n<\/tr>\r\n
      Investment<\/td>\r\n700<\/td>\r\n<\/tr>\r\n
      Government Expenditure<\/td>\r\n100<\/td>\r\n<\/tr>\r\n
      Exports<\/td>\r\n50<\/td>\r\n<\/tr>\r\n
      Imports<\/td>\r\n40<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n

      Using the expenditure approach<\/strong>, calculate GDP for China.<\/p>\r\n \r\n

        \r\n \t
      1. Consider the following table showing the breakdown of GDP (in billions) for China.<\/li>\r\n<\/ol>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
        GDP Category<\/strong><\/td>\r\nAmount (in billions)<\/strong><\/td>\r\n<\/tr>\r\n
        Wages and Salaries<\/td>\r\n1000<\/td>\r\n<\/tr>\r\n
        Consumption<\/td>\r\n1700<\/td>\r\n<\/tr>\r\n
        Investment<\/td>\r\n700<\/td>\r\n<\/tr>\r\n
        Depreciation<\/td>\r\n50<\/td>\r\n<\/tr>\r\n
        Government Expenditure<\/td>\r\n100<\/td>\r\n<\/tr>\r\n
        Taxes<\/td>\r\n300<\/td>\r\n<\/tr>\r\n
        Exports<\/td>\r\n50<\/td>\r\n<\/tr>\r\n
        Imports<\/td>\r\n40<\/td>\r\n<\/tr>\r\n
        Income receipts from rest of the world<\/td>\r\n10<\/td>\r\n<\/tr>\r\n
        Income payment to rest of the world<\/td>\r\n50<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n

        \u00a0<\/strong>What are net exports for China?<\/p>\r\n\r\n

          \r\n \t
        1. Suppose that GDP in Japan is 1030 and then grows to 1160 (all numbers in billions)<\/li>\r\n<\/ol>\r\n

          What is the growth rate of GDP in Japan?<\/p>\r\n \r\n

          Use the following information to answer questions 5 through 15:<\/h3>\r\nThe tables below show data on prices and quantities of Oranges and Shoes produced in China.\r\n

          Data for 2014<\/h3>\r\n\r\n\r\n\r\n\r\n
          Price of Oranges<\/td>\r\nQuantity of Oranges<\/td>\r\nPrice of Shoes<\/td>\r\nQuantity of Shoes<\/td>\r\n<\/tr>\r\n
          0.7<\/td>\r\n200<\/td>\r\n10<\/td>\r\n270<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n

          Data for 2015<\/h3>\r\n\r\n\r\n\r\n\r\n
          Price of Oranges<\/td>\r\nQuantity of Oranges<\/td>\r\nPrice of Shoes<\/td>\r\nQuantity of Shoes<\/td>\r\n<\/tr>\r\n
          0.9<\/td>\r\n150<\/td>\r\n14<\/td>\r\n250<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n

          Data for 2016<\/h3>\r\n\r\n\r\n\r\n\r\n\r\n
          Price of Oranges<\/td>\r\nQuantity of Oranges<\/td>\r\nPrice of Shoes<\/td>\r\nQuantity of Shoes<\/td>\r\n<\/tr>\r\n
          1.4<\/td>\r\n300<\/td>\r\n15<\/td>\r\n330<\/td>\r\n<\/tr>\r\n
           \r\n\r\n <\/td>\r\n<\/td>\r\n<\/td>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n
            \r\n \t
          1. Given this data, what is the Nominal GDP in 2014?<\/li>\r\n<\/ol>\r\n \r\n
              \r\n \t
            1. What is the Nominal GDP in 2015?<\/li>\r\n<\/ol>\r\n \r\n
                \r\n \t
              1. What is the Nominal GDP in 2016?<\/li>\r\n<\/ol>\r\n \r\n
                  \r\n \t
                1. Using 2014 as the base year, what is the Real GDP in 2014?<\/li>\r\n<\/ol>\r\n \r\n
                    \r\n \t
                  1. Using 2014 as the base year, what is the Real GDP in 2015?<\/li>\r\n<\/ol>\r\n \r\n
                      \r\n \t
                    1. Using 2014 as the base year, what is the Real GDP in 2016?<\/li>\r\n<\/ol>\r\n \r\n
                        \r\n \t
                      1. Using 2014 as the base year, what is the GDP Deflator in 2014?<\/li>\r\n<\/ol>\r\n \r\n
                          \r\n \t
                        1. Using 2014 as the base year, what is the GDP Deflator in 2015?<\/li>\r\n<\/ol>\r\n \r\n
                            \r\n \t
                          1. Using 2014 as the base year, what is the GDP Deflator in 2016?<\/li>\r\n<\/ol>\r\n \r\n
                              \r\n \t
                            1. Using 2014 as the base year, what is the growth rate of the GDP deflator (also know as inflation rate) between 2014 to 2015?<\/li>\r\n<\/ol>\r\n \r\n
                                \r\n \t
                              1. Using 2014 as the base year, what is the growth rate of the GDP deflator (also know as inflation rate) between 2015 to 2016?<\/li>\r\n<\/ol>\r\n
                                \r\n\r\n \r\n\r\n
                                \r\n\r\n[1]<\/a> This assignment by Lumen Learning is licensed under a Creative Commons Attribution 4.0 International License. You can access an alternative means to plotting points at https:\/\/www.desmos.com\/calculator<\/a>.\r\n\r\n<\/div>","rendered":"

                                You can click on the following link to download the problem set for this module:\u00a0GDP and Economic Growth Problem Set.<\/a><\/p>\n

                                GDP and Economic Growth Problem Set[1]<\/strong><\/a><\/sup><\/h2>\n
                                  \n
                                1. Suppose that a farmer grows wheat, which she sells to a miller for $10.<\/li>\n<\/ol>\n

                                  The miller turns the wheat into flour, which she sells to a baker for $55.<\/p>\n

                                  The baker turns the wheat into bread, which she sells to consumers for $140.<\/p>\n

                                  Consumers eat the bread.<\/p>\n

                                  What is GDP in this economy?<\/p>\n

                                   <\/p>\n

                                    \n
                                  1. Consider the following table showing the breakdown of GDP (in billions) for China.<\/li>\n<\/ol>\n\n\n\n\n\n\n\n\n
                                    GDP Category<\/strong><\/td>\nAmount (in billions)<\/strong><\/td>\n<\/tr>\n
                                    Consumption<\/td>\n1700<\/td>\n<\/tr>\n
                                    Investment<\/td>\n700<\/td>\n<\/tr>\n
                                    Government Expenditure<\/td>\n100<\/td>\n<\/tr>\n
                                    Exports<\/td>\n50<\/td>\n<\/tr>\n
                                    Imports<\/td>\n40<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

                                    Using the expenditure approach<\/strong>, calculate GDP for China.<\/p>\n

                                     <\/p>\n

                                      \n
                                    1. Consider the following table showing the breakdown of GDP (in billions) for China.<\/li>\n<\/ol>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
                                      GDP Category<\/strong><\/td>\nAmount (in billions)<\/strong><\/td>\n<\/tr>\n
                                      Wages and Salaries<\/td>\n1000<\/td>\n<\/tr>\n
                                      Consumption<\/td>\n1700<\/td>\n<\/tr>\n
                                      Investment<\/td>\n700<\/td>\n<\/tr>\n
                                      Depreciation<\/td>\n50<\/td>\n<\/tr>\n
                                      Government Expenditure<\/td>\n100<\/td>\n<\/tr>\n
                                      Taxes<\/td>\n300<\/td>\n<\/tr>\n
                                      Exports<\/td>\n50<\/td>\n<\/tr>\n
                                      Imports<\/td>\n40<\/td>\n<\/tr>\n
                                      Income receipts from rest of the world<\/td>\n10<\/td>\n<\/tr>\n
                                      Income payment to rest of the world<\/td>\n50<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

                                      \u00a0<\/strong>What are net exports for China?<\/p>\n

                                        \n
                                      1. Suppose that GDP in Japan is 1030 and then grows to 1160 (all numbers in billions)<\/li>\n<\/ol>\n

                                        What is the growth rate of GDP in Japan?<\/p>\n

                                         <\/p>\n

                                        Use the following information to answer questions 5 through 15:<\/h3>\n

                                        The tables below show data on prices and quantities of Oranges and Shoes produced in China.<\/p>\n

                                        Data for 2014<\/h3>\n\n\n\n\n
                                        Price of Oranges<\/td>\nQuantity of Oranges<\/td>\nPrice of Shoes<\/td>\nQuantity of Shoes<\/td>\n<\/tr>\n
                                        0.7<\/td>\n200<\/td>\n10<\/td>\n270<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

                                        Data for 2015<\/h3>\n\n\n\n\n
                                        Price of Oranges<\/td>\nQuantity of Oranges<\/td>\nPrice of Shoes<\/td>\nQuantity of Shoes<\/td>\n<\/tr>\n
                                        0.9<\/td>\n150<\/td>\n14<\/td>\n250<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

                                        Data for 2016<\/h3>\n\n\n\n\n\n
                                        Price of Oranges<\/td>\nQuantity of Oranges<\/td>\nPrice of Shoes<\/td>\nQuantity of Shoes<\/td>\n<\/tr>\n
                                        1.4<\/td>\n300<\/td>\n15<\/td>\n330<\/td>\n<\/tr>\n
                                         <\/p>\n

                                         <\/td>\n

                                        		<\/td>\n<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
                                          \n
                                        1. Given this data, what is the Nominal GDP in 2014?<\/li>\n<\/ol>\n

                                           <\/p>\n

                                            \n
                                          1. What is the Nominal GDP in 2015?<\/li>\n<\/ol>\n

                                             <\/p>\n

                                              \n
                                            1. What is the Nominal GDP in 2016?<\/li>\n<\/ol>\n

                                               <\/p>\n

                                                \n
                                              1. Using 2014 as the base year, what is the Real GDP in 2014?<\/li>\n<\/ol>\n

                                                 <\/p>\n

                                                  \n
                                                1. Using 2014 as the base year, what is the Real GDP in 2015?<\/li>\n<\/ol>\n

                                                   <\/p>\n

                                                    \n
                                                  1. Using 2014 as the base year, what is the Real GDP in 2016?<\/li>\n<\/ol>\n

                                                     <\/p>\n

                                                      \n
                                                    1. Using 2014 as the base year, what is the GDP Deflator in 2014?<\/li>\n<\/ol>\n

                                                       <\/p>\n

                                                        \n
                                                      1. Using 2014 as the base year, what is the GDP Deflator in 2015?<\/li>\n<\/ol>\n

                                                         <\/p>\n

                                                          \n
                                                        1. Using 2014 as the base year, what is the GDP Deflator in 2016?<\/li>\n<\/ol>\n

                                                           <\/p>\n

                                                            \n
                                                          1. Using 2014 as the base year, what is the growth rate of the GDP deflator (also know as inflation rate) between 2014 to 2015?<\/li>\n<\/ol>\n

                                                             <\/p>\n

                                                              \n
                                                            1. Using 2014 as the base year, what is the growth rate of the GDP deflator (also know as inflation rate) between 2015 to 2016?<\/li>\n<\/ol>\n
                                                              \n

                                                               <\/p>\n

                                                              \n

                                                              [1]<\/a> This assignment by Lumen Learning is licensed under a Creative Commons Attribution 4.0 International License. You can access an alternative means to plotting points at https:\/\/www.desmos.com\/calculator<\/a>.<\/p>\n<\/div>\n\n\t\t\t

                                                              \n\t\t\t

                                                              Candela Citations<\/h3>\n\t\t\t\t\t
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                                                              CC licensed content, Original<\/div>