Economics help needed to Compute the Nominal GDP
Economics

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Let the price of Barbancourt ( the Haitian Rum) be $15 a bottle in the year 200 and $25 in the year 2014 and its production 5,000 and 7,500 bottles respectively for the two years. Let the price of a bag of rice be $200 in 2000 and $350 in 2014, when its production is 10,000 and 25,000 bags for the same two years. Let the price of a bag of beans be $250 in 2000 and $400 in 2014, when its production is 8,000 and 20,000 bags of the two years respectively. Using the yer 2000 as the base year compute
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Calculation for GDP....
For year 2000......
For rum, cost of 5000 bottlles=15x5000=7500dollars
Cost of 10000 bags of rice=10,000x200=2000,000dollars
Cost of 800 bags of beans=250x8000=1400,000dollars
Total GDP for year 2000=7500+2000,000+1400,000=3475,000dollars
Now for year 2014......
Cost for 7500 bottles of rum=25x7500=187500dollar
Cost of 25,000bags of rice=25,000x350=8750,000dollar
Cost of 20,000 bags of beans=400x20,000=8000000dollar
So GDP for 2014=187500+8750000+8000000=16937500dollar
Please let me know if you need any clarification. I'm always happy to answer your questions.What is the real GDP for both years
Real GDP accounts for the price changes that may occur due to inflation.If prices change from one period to the next but actual output does not change,NGDP will also change even though output remains same.To adjust for price change,RGDP is calculated using prices from specific year , the base year.
In this case base year is year 2000.so for year 2000 the NGDP and RGDP are same. For year 2014 ,RGDP and N GDP are different.We can calculate the cost of all items separately , using the cost price for each item for year 2000, though quantity will be for year 2014. And you can calculate in similar way and find RGDP for year 2014. I think this will help you.
What is the Implicit price deflator for GDP for both years?
What is the CPI for both years
GDP deflator for year 2000 will be same as NGDP because our base year is year 2000
For year 2014, we can calculate GDP deflator....
Cost of 7500 bottles of rum=15x7500=112,500dollars
Cost of 25,000 of bags of rice=25,000x200=5000,000dollars
Cost of 20,000 bags of beans=20,000x250=5000,000dollars
Total cost=GDP deflator for year2014=112,5000+5000,000+5000,000=10112,500dollars
When we calculate GDP deflator, we take the cost price for the base year and quantity for the year for which we are calculating GDP deflator , here this is year 2014.
CPI, consumer price index.....
This is the estimate of the price level of consumer goods and services in an economy.
A CPI takes certain basket of common goods and services and tracks the changes in the prices of that basket of goods over time.
Calculation for CPI.....
Step(1)....select a base year, say year 2000
Step(2)...select a basket of goods, say rum, beans bags and rice bags and add the prices of all goods in that year.
Step(3)....select the year you want to calculate CPI, here year 2014 , and add all the prices of all goods in that basket for that year , 2014
Step(4)....calculate CPI as...
CPI==price of goods in year 2014/price of goods in year2000x100
=16937500/3475000x100=4.87x100=487
So inflation =487100=387 percent
I think now you can understand.
Suppose that the closed economy of an island H is described by the following equations: GDP (Y) = 10000, government expenditures (G)= 600, (Taxes (T) = 2000, Consumption (C) =400 + 3/4 (YT), and investment (I) = 200 1400 r
COMPUTE:
1. Private Sving
2. Public Saving
3.National Saving
4. Equilibrium interest rate
5. What can you you conclude about the economy of island H?
Hi, before attempting this I want to clear one thing , will I be paid for the correct answer? Also what is r in this question, it is not clear to me, waiting for your reply, thanks
Yes you will be paid, and concerning the r in the problem thats what i see. I typed everything that i saw on the paper i have. How much do you require to be paid let me know
Ok, I can try...
In closed economy, if Y is the national income(GDP), C is the consumption, I is the investment, and G is the government purchases, then....
Y=C+I+G
National saving can be thought as the amount of remaining money that is not consumed or spent by government.In simple model of closed economy, anything which is not used is to be invested, so
National saving=YCG
National saving should be split into private saving and public saving.A new term T is tax payed by consumers that goes directly to the government as shown here....
YCG+TT=I We add T and subtract T , so eq does not change
(YTC)+(TG)=I
Now (YTC) is called private saving
(TG) is called the public savings , also the government revenue minus government expenditure.This is also known as Budget surplus.
Calculations.......
Given.....
GDP(Y)=10,000
Government expenditure G=600
Taxes=2000, Investment(I)=2001400r
Consumption (C)=400+3/4(YT)
=400+3/4(10,0002000)=400+3/4x8000=400+3x2000=400+6000=6400
So C=6400
Now private saving=YTC=10,00020006400=10,0008400=1600
Public saving=TG=2000600=1400
National Saving=Private saving +Public saving=1600+1400=3000=I
Now r is the equilibrium interest rate, we can calculate it as follows...
Using I=2001400r
Substituting the value of I, we get...
3000=2001400r
1400r=2800
r=2800/1400=2 Is same as 200percent
The negative value of r is not a interesting figure, I am wondering whether eq I=2001400r is written correct, pl check it again.
About economy of the island H, I can say that when revenue of government is more than expenditure, which is public saving is 1400 , so there is Budget Surplus, this the situation when income exceeds the expenditure, it means government is being run efficiently, economy of the island is good, a Budget surplus might be used to pay off debts, for the development of the island.
I think this will help you, regarding payments, whatever you feel ok, you can pay ,I will appreciate that.
Thanks for the answer
When and how much you are paying for the answer.?
How do i pay for it, i dont see the link
I just payed for it
Can anyone help me with a spreadsheet assignment
Please first give me the question, then only I can tell whether I can do it or not
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Its about 22 questions on what functions to use to fill out a worksheet/ spreadsheet
are you familiar with spreadsheet assignments or should i ask another tutor
You can go with another tutor, if you have any Algebra, Arithmetic, Geometry problem, you can ask me.
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