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NEED THIS ANSWERED ASAP - WILL MARK BRAINLIEST
a.)Calculate each of the following and show your work.
-Nominal GDP
-Real GDP
-Real GDP per capita
b.)Debbie is a citizen of the country of Wayland and owns a computer software firm in Pattiland. Is the output produced by Debbie’s computer software firm included in Pattiland’s nominal GDP calculated in part (a)? Explain.
c.)The GDP deflator for Pattiland in 2015 was 110. In 2016 was Pattiland experiencing inflation or deflation, or is there insufficient information to determine Pattiland’s economic condition? Explain.
d.)Calculate the unemployment rate in Pattiland.
*The information graph in in the PDF*

Respuesta :

Nominal GDP - $180, Real GDP - $200, Real GDP per captia - $4

Unemployment rate - 20%

Explanation:

Part B. Yes, the output produced by the Debbie computer software firm is included in the GDP of Pattiland. Here if goods and services are produced within the domestic boundaries of the country Pattiland, these will be included in the nominal GDP of the country even if the firm belongs to other country.

C. GDP deflator in 2015 = 110

GDP deflator in 2016 = 90

The Pattiland is experiencing Deflation. Deflation is the decrease in the price leve when inflation falls below 0% level. Here In GDP deflator index 100 value denotes no inflation. when GDP deflator rises above 100 value there is increase in inflation in the economy. And when it falls below 100 base value , it reflects deflationary situation.

The nominal GDP is $180, Real GDP is $200, and Real GDP per capita is $4

  • The Nominal GDP will be:

= Consumption + Investment + Government spending + Net exports

= 90 + 65 + 50 + (25 - 50)

= 205 - 25

= 180  

  • The Real GDP will be:

= Nominal GDP / GDP deflator in 2016 * 100

= 180/90 * 100

= 2 * 100

= 200

  • The Real GDP per capita will be:

= Real GDP in 2016 / Population  

= 200 / 50

= 4  

B. Yes, the output that is produced by the Debbie computer software firm will be included in the GDP of Pattiland.

  • C. GDP deflator in 2015 = 110
  • GDP deflator in 2016 = 90

This implies that Pattiland is experiencing deflation. Deflation simply means the reduction in the price level when inflation falls below the 0% level.

d. The unemployment rate will be:

= labour force - employed / labour force * 100

= 5/25 * 100

= 20 %

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