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Novay_Z [31]
3 years ago
9

Suppose GDP consists of wheat and rice. In 2005, 20 bushels of wheat are sold at $4 per bushel, and 10 bushels of rice are sold

at $2 per bushel. In 2004, 20 bushels of wheat are sold at $2 per bushel and 10 bushels of rice are sold at $1 per bushel. Using 2004 as the base year, it follows that, for 2005. Group of answer choices Nominal GDP is $100, real GDP is $50, and the GDP Deflator is 50. Nominal GDP is $100, real GDP is $50, and the GDP Deflator is 200. Nominal GDP is $40, real GDP is $100, and the GDP Deflator is 50. Nominal GDP is $50, real GDP is $100, and the GDP Deflator is 200.
Business
1 answer:
Vesnalui [34]3 years ago
4 0

Answer:

Nominal GDP is $100, real GDP is $50, and the GDP Deflator is 200

Explanation:

Given that:

Base year = 2004

2004:

20 Bushels of wheat = $2 per bushel

10 Bushels of rice = $1 per bushel

2005:

20 Bushels of wheat = $4 per bushel

10 Bushels of rice = $2 per bushel

Nominal GDP

GDP deflator = (Nominal GDP / Real GDP) * 100

2005 Nominal GDP:

Final value of goods at current year prices:

(20 * $4) + (10 * $2)

$80 + $20 = $100

2005 Real GDP:

Final value of goods at base year prices :

(20 * $2) + (10 * $1)

$40 + $10 = $50

Deflator :

(Nominal GDP / Real GDP) * 100

($100 / $50) * 100

2 * 100 = 200

= 200

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a.common stock.

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7 0
3 years ago
Overview of financial planning
VMariaS [17]

Answer:

1. Operating plan.

2. Operating plan.

3. Financial plan.

4. Dividend policy.

5. B and C.

Explanation:

1. Operating plan: provides detailed implementation guidance for a firm's operations, as well as a forecast of the company's expected future free cash flows.

2. Operating plan: provides the inputs necessary for a risk management evaluation using sensitivity analysis, scenario analysis, or simulations.

3. Financial plan: Is based on knowledge of the amount of funds necessary to compensate the firm's shareholders, and the mix of debt and equity capital used to finance the firm.

4. Dividend policy: sets forth specific targets for cash or share distributions to the firm's shareholders.

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Hence, the following statements are true about financial planning;

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6 0
3 years ago
A firm sells 1000 units per week. It charges $15 per unit, the average variable costs are $10, and the average costs are $25. In
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Answer:

b. ​Continue operating as the firm is covering all the variable costs and some of the fixed costs

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A firm should shutdown operations if its price is less than average variable cost.

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I hope my answer helps you

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<h3>What is the role of retailing in the buying process?</h3>

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Retailing is therefore hugely important because it connects the brands to the consumers that they serve . Without retailing, companies would make products and services and be unable to sell them to anyone as they would not have any connection to the final consumers .

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Answer:

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