Problem set
Im studying for my Economics class and need an explanation.
1. Data on Argentina from 2016 to 2018 is displayed in the table. Values are in US billion dollars. Fill in the missing information and answer the questions below
|
Nominal GDP (in US billion dollars) |
GDP Deflator |
Real GDP (in US billion dollars) |
|
|
2015 |
82.55 |
720.4 |
|
|
2016 |
557.7 |
707.2 |
|
|
2017 |
642.7 |
88.35 |
b) Calculate the GDP growth rate from 2015 to 2016
c) Calculate the GDP growth rate from 2016 to 2017
d) What is the inflation rate from 2016 to 2017?
e) What will Argentinas GDP be in 5 years?
f) How long will it take for Argentinas GDP to double?
7. The typical household purchases the following items in a month. Fill in the missing information and answer the questions below
|
2017 |
2018 |
2019 |
||
|
Pizza |
8 large pizzas |
$10 |
$11 |
$13 |
|
Soda |
10 bottles |
$1.50 |
$1.50 |
$1.75 |
|
Chips |
10 bags |
$2.65 |
$2.75 |
$3.00 |
|
Price of the basket |
||||
|
CPI |
h) Calculate the inflation rate between 2018 and 2019
i) Explain how inflation might hurt some people while benefitting others.
10. Brazil can produce 250 tons of soybean 40 tons of beef. The US can produce 80 tons of soybeans and 40 tons of beef.
a) Who has the absolute advantage in producing soybeans?
b) Who has the absolute advantage in producing beef?
c) What is Brazils opportunity cost of producing 1 ton of soybeans? What is the opportunity cost of 1 ton of soybeans for the US?
d) Who has the comparative advantage in producing soybeans and in beef?