Answered: Define “retail sales” index and tell…

Business

Economics

Define “retail sales” index and tell why it is important as an economic indicator.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp

Section: Chapter Questions

Problem 12QP

See similar textbooks

Related questions

Q: Calculate the GDP deflator and the rate of inflation for each year: (€ million) 2013 2014 2015…

A: The GDP deflator monitors price changes across all goods and services produced in a nation.The GDP…

Q: The table below shows the GDP deflator and the CPI over the past five years. By what percentage did…

A: To ascertain a percentage change, first work out the distinction (increment/decrement) between the…

Q: 2017 2018 2019 Price Cost Price Cost Price Cost Quantity in Basket (Dollars) (Dollars) (Dollars)…

A: Cost of goods current year = Quantity in basket*price in current year. Percentage Change in CSPI =…

Q: What does the Consumer Price Index (CPI) measure? Be specific about what the categories of goods and…

A: Macroeconomics is an important aspect for a country. Aggregate demand and aggregate supply are…

Q: The following table shows nominal GDP figures for three years and the price indices for each of the…

A: The price index such as GDP deflator and producer price index (PPI) gauges the inflation in average…

Q: Please use the following information to calculate the rate of inflation between the two periods…

A: GDP Deflator = Nominal GDP / Real GDP * 100 Inflation rate = Percentage increase in GDP deflator

Q: Using your knowledge of price indexes, answer the following questions. (a) In a base year, what will…

A: In an economy, price indexes are the tools to measure the changes in the price level or inflation…

Q: Gross Domestic Product a. In 1803 the United States purchased Louisiana and other territories…

A: GDP Deflator is an aggregate level measure of inflation than producer price inflation and retail…

Q: Suppose that the prices of capital goods (goods purchased by firms as investment) rose. How would…

A: In an economy, capital goods at ethe goods that are produced and consumed for the long-run.

Q: eal-Time Data Analysis Exercise se the data in the following table to calculate the GDP deflator for…

A: The gross domestic product(GDP) refers to the market value of final commodities(goods and services)…

Q: Find the price index if the nominal GDP is 4400 the real gdp is 2200 ?

A: Generally in the given question, Nominal GDP value is = 4400 The real GDP is = 2200 Price index = ?

Q: Refer to the data below and using year 1 as the base year, the real GDP in year 4 was approximately:…

A: Real GDP is the value of goods adjusted for inflation Real GDP = Nominal GDP *100 / Price index

Q: Calculate Nominal and Real GDP for each year. Consider the base year is 2013. a. Year Bottles of…

A: Nominal gross domestic product is gross domestic product (GDP) evaluated at current market prices.…

Q: a. Using 2000 as the base year, compute the following statistics for each year: nominal GDP, real…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Question: Answer to Year Nominal GDP Real GDP Price Index 15,200 . Year Nominal GDP Real GDP Price…

A: The following formula is used to compute price index: Price index =Nominal GDPReal GDP

Q: Calculate GDP deflator if real GNP is $47,000 and the nominal GNP is $60,000

A: The data presented in the question above is:- Real GNP = $47,000 Nominal GNP = $60,000 The value of…

Q: If nominal GDP is $5 trillion and real GDP is $4 trillion, the GDP deflator is: 12.5. 125.

A: GDP Deflator measure of the level of prices of all new, domestically produced, final goods and…

Q: The following prices and quantities produced were recorded in computer land during the years shown…

A: GDP deflector=nominal GDPreal GDP×100

Q: If nominal GDP is $6 trillion and the price index is 150%, then real GDP is: a. $9 trillion b. $1…

A: Here, given information is: Nominal GDP: $6 trillion Price index (GDP deflator): 150% To find:…

Q: Consider an economy that produces and consumes Bread and Automobile. Data for two different years…

A: Nominal GDP is the money value of goods and services at current market prices. That is, nominal GDP…

Q: Compute the values of real GDP and GDP deflator in 2018 and 2019 (using 2017 as the base year).

A: When we calculate the total value of output at the base year price it is called Real GDP.

Q: Fill in the missing data in the following table. Year Nominal GDP Real GDP GDP deflator 2012 $220000…

A: Nominal GDP is the market value of goods and services produced in an economy, unadjusted for…

Q: Solve this attachment.

A: The GDP Deflator has another name as well, GDP Price Deflator or Implicit Price Deflator. It…

Q: If Gdp deflator is equal at 120 it means that : 1- stagflation 2- deflation 3- inflation…

A: The GDP price deflator measure the changes in prices by comparing nominal GDP to real GDP.

Q: compare and contrast the calculations for the consumer price index and the GDP price index as…

A: Formula for GDP price indexGDP Deflator=Nominal GDPReal GDP ×100 where Nominal GDP is the market…

Q: Nominal GDP 2018 = $24,200 What is the “real” 2018 GDP measure in 2012 prices if the 2018 price…

A: Real GDP in 2018= Nominal GDP in 2018/ Price index Nominal GDP would be based on current prices…

Q: Define the term consumer price index (CPI)?

A: A price index number is a macroeconomic measure that compares a series of prices in different time…

Q: For CPI to be a useful price index, we need a. The foods and services included in CPI to be…

A: The Consumer Price Index (CPI) is an action that inspects the weighted normal of prices of a crate…

Q: The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the…

A: The country of Caspir produces only cereal and milk . Given that, the base year is 2008.

Q: Compute Nominal and Real GDP in each year and find percentage changes in the GDP. (Use 2001 as base…

A: Orange Dates Year Price Quantity Price Quantity 2001 6 100 1.50 800 2002 7 150 2.00 900…

Q: When GDP is measured in "current prices" it is known as the O A) real GDP. B) nominal GDP. C)…

A: Gross domestic product is the market value of all the services and finished goods being produced…

Q: Chain-Weignted Price Deflators (Index) for GDP 2012 = 100 (Base Year) Nominal GDP Year (in Billions)…

A: Since you have posted a question with multiple subparts as per the Bartleby guidelines we would only…

Q: If nominal GDP is $400, real GDP is $200, then calculate price level

A: Price level - Average price of all the goods in an economy.

Q: Define consumer price index And tell why it is important to the economy.

A: CONSUMER PRICE INDEX (CPI) It is a measure for estimating changes in the price paid by the consumer…

Q: Based on the data below, what was the Real GDP in 2C Nominal Price Year Real GDP GDP Deflator 2015…

A: GDP deflator is used to measure the change in general price level. It measures the price changes of…

Q: Use the attached table to calculate the following: Nominal GDP in 2008 and 2011 Use real GDP in…

A: Nominal. GDP = Price * Quantity Nominal GDP in 2008 = 1000*5500+6000*1350+7600*50+1500*670 =…

Q: Nominal GDP last year was $28,909 billion. Contracts on the futures markets are currently selling…

A: A future contract is a derivate instrument which derives it's value from an underlying asset. In…

Q: Gross Domestic Product If nominal GDP in 1975 was $1699.9 billion and the GDP deflator (price…

A: The real GDP is the market value of all final goods and services produced in an economy during an…

Q: Consumers in an economy buy only three general types of products, A, B, and C. Changes in the prices…

A: Gross domestic product is the total market value of domestically produced goods and services in an…

Q: The following table shows nominal GDP and an appropriate price index for a group of selected years.…

A: Given: Year Nominal GDP (Billions) Price Index (2000 = 100) 1964 $663.6 22.13 1974 $1500…

Q: i. Calculate Happyland Republic's nominal GDP, real GDP in 2020. Also, calculate the GDP deflator if…

A: Below is the calculated values in table:

Q: compute the percentage change in the overall price level. Also use 2017 as the base year

A: GDP deflator measures an increase in value of goods and services over the years.

Q: The following are two sets of retail prices of a family’s shopping basket. The data pertain to…

A: a) Simple Price Index:- Commodity Price (2014) (P0) Price (2015) (P1) Price Relative Shirt 350…

Q: d. Use GDP deflator to compute the inflation rate from 2006 to 2007 and from 2007 to 2008.

A: We know that, The GDP deflator in 2006 = 100 The GDP deflator in 2007 = 102.8 The GDP deflator in…

Q: Fill in the missing data in the following table. Year 2012 2013 Nominal GDP $220000 $ 2014 $260,000…

A: The GDP deflator, also called implicit price deflator, is a measure of inflation. It is the ratio of…

Q: COMPUTE THE NOMINAL GDP

A: A country's nominal GDP is determined using current prices and is not adjusted for inflation.…

Question

Define “retail sales” index and tell why it is important as an economic indicator.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Why might even real GDP be a misleading index of changes in output between 1950 and 2015 in the United States?
Define consumer price index And tell why it is important to the economy.
what is the consumer price index? How do we interpret the consumer price index comparison of the two countries? Interpret the graph below .
How do you calculate potential GDP when you are given this chart?
Using the data in the table, compare the percentage rates of change in nominal GDP, real GDP, and the GDP Price Index over these three time periods. Note changes in the magnitudes of each. Are there periods when prices grew more rapidly? Are there periods where real output grew more rapidly? Note how these affect the percentage change in nominal GDP. Make specific observations based on the information in the table.
Please help me find the GDP for the following countries Mexico, Canada, India, China, UK and Egypt with explanation of how you found the answer
Explain the differences between the Consumer Price Index (CPI) and the GDP deflator
What is the term for the total value of goods and services produced within a country's borders in a given year? A. Gross national product (GNP) B. Gross domestic product (GDP) C. Net exports D. Aggregate demand
Find Nominal GDP if GDP deflator is 136 and real GDP is $16,000
A small economy produces three main products, products A, B, and C. The following table indicates the prices and quantities for the three products from 2013 to 2016. Product A Product B Product C Year Price Quantit Price Quantit Price Quantit 2013 57.5 60.5 24.75 4 12 5.5 6 14 6 4 2014 2015 2016 4 63.5 66 13 7 10 6 27.5 4 10 17 Using 2013 as the base year, calculate the real GDP for the years 2016. Select one: а. 492 b. 523.25 C. 722.75 d. None of the answers are correct e. 680.5 O CO
The following table shows nominal GDP and an appropriate price index for a group of selected years. Compute real GDP. Indicate in each calculation whether you are inflflating or deflflating the nominal GDP data.
Construct a graph for GDP at current prices, manufacturing and wholesale and retail trade, accommodation and restaurants