Assignment: Intermediate Macroeconomics
1.) "Trade Can Make Everyone Better Off". Explain how, if you agree?
2.) In Movieland, there are only 3 goods: popcorn, movie shows, and diet drinks. The following table shows the prices and quantities produced of these goods in 2013, 2014, and 2015:
|
Year
|
Price of popcorn
|
Quantity of popcorn
|
Price of movie shows
|
Quantity of movie shows
|
Price of diet drinks
|
Quantity of diet drinks.
|
|
2013
|
$5
|
450
|
$25
|
225
|
$15
|
150
|
|
2014
|
$6
|
550
|
$50
|
250
|
$12
|
200
|
|
2015
|
$9
|
950
|
$65
|
275
|
$ 10
|
275
|
Required: (2013 is base year)
a) Calculate the Nominal GDP for all three years.
b) Calculate the Real GDP for all three years.
c) Calculate the annual growth rate of nominal GDP ( for 2014 & 2015)
d) Calculate the annual real economic Growth rate (for 2014 & 2015).