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Suppose that people consume and produce only two goods, as shown in the following table: Coffee Bagels 2019 price/unit $
Posted: Thu May 19, 2022 10:09 am
by answerhappygod
- Suppose That People Consume And Produce Only Two Goods As Shown In The Following Table Coffee Bagels 2019 Price Unit 1 (90.69 KiB) Viewed 51 times
Suppose that people consume and produce only two goods, as shown in the following table: Coffee Bagels 2019 price/unit $3.00 $1.00 2019 quantity 50 2020 price/unit $4.00 $1.50 2020 quantity 55 40 2021 price/unit $5.00 $2.00 2021 quantity 60 50 30 (a) Calculate the CPI in each year, and then use your answer to calculate the inflation rates in 2020 and 2021. Use 2019 as the base year and fix the basket at 50 coffees and 30 bagels. Show all your work. (b) Calculate nominal GDP, real GDP, and the GDP deflator for all three years, using 2019 as the base year. Use your answers to calculate the inflation rates in 2020 and 2021. Show all your work. (12 points) 4. Suppose GDP is $40 million, private saving is $10 million, consumption is $26 million, and public saving is -$4 million. Assume the economy is closed. (a) Calculate taxes minus transfer payments (T), government purchases (G), national saving (S), and investment (I). (b) Is the government running a surplus or a deficit? Explain.