Qb/501 Week 4

Order of Operations and Dependent and Independent Variables

Melissa Barron
Phoenix University
QRB/501

Chapter 7 Study Question 12

12. Key Question 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 inflating or deflating the nominal GDP data.

Nominal GDP, Price Index Real GDP, Year Billions (1996-100) Billions

1960 $527.4 22.19 $2,376.85
1968 $911.5 26.29 $3,467.1
1978 $2295.9 48.22 $4,761.3
1988 $4742.5 80.22 $5,911.9
1998 $8790.2 103.22 $8,515.8

Chapter 8 Study Question 2 & 11

2. Key Question Suppose an economy’s real GDP is $30,000
Product Fixed Cost Variable Cost Cost Fixed Cost Variable Cost Total Cost Cost 0 $60 $0 $60 $0 $0 $0 $0 1 $60 $45 $105 $60 $45 $105
2 $60 $85 $145 $30 $42.5 $72.5 $40 3 $60 $120 $180 $20 $40 $60 $35 4 $60 $150 $210 $15 $37.5 $52.5 $30 5 $60 $185 $245 $12 $37 $49 $35 6 $60 $225 $285 $10 $37.5 $47.5 $40 7 $60 $270 $330 $8.6 $38.6 $47.14 $45 8 $60 $325 $385 $7.5 $40.63 $48.13 $55 9 $60 $390 $450 $6.7 $43.33 $50 $65 10 $60 $465 $525 $6 $46.5 $52.5