Question

Sizing Up the Economy Using GDP — Work It Out The table displays price and quantity information for two vehicle models produced by Ford Motor Company, the F-series trucks and Escape SUVs. | | 2016 | 2017 | | :--- | :--- | :--- | :--- | :--- | | | Price | Quantity | Price | Quantity | | Escape SUVs | $24,485 | 307,069 | $24,645 | 308,296 | | F-series trucks | $44,400 | 820,799 | $47,800 | 896,764 | Round all numerical answers to two decimal places. a. Calculate the amount contributed by Ford to U.S. real and nominal GDP from the sales of the two models in 2016 and 2017. Nominal GDP 2016: 4.4 billion Nominal GDP 2017: 5.0 billion Real GDP 2016: billion Real GDP 2017: 4.7 billion b. Determine the growth rate of nominal GDP (if Ford were the entire economy). Growth rate of nominal GDP: 14.78 % c. Determine the growth rate of real GDP (if Ford were the entire economy). Growth rate of real GDP: 7.74 % d. Use the shortcut you learned to convert between real and nominal GDP growth rates to determine the growth rate of prices. Growth rate of prices: 1.06 %

          Sizing Up the Economy Using GDP — Work It Out

The table displays price and quantity information for two vehicle models produced by Ford Motor Company, the F-series trucks and Escape SUVs.

| | 2016 | 2017 |
| :--- | :--- | :--- | :--- | :--- |
| | Price | Quantity | Price | Quantity |
| Escape SUVs | $24,485 | 307,069 | $24,645 | 308,296 |
| F-series trucks | $44,400 | 820,799 | $47,800 | 896,764 |

Round all numerical answers to two decimal places.

a. Calculate the amount contributed by Ford to U.S. real and nominal GDP from the sales of the two models in 2016 and 2017.

Nominal GDP 2016: 4.4 billion Nominal GDP 2017: 5.0 billion

Real GDP 2016: billion Real GDP 2017: 4.7 billion

b. Determine the growth rate of nominal GDP (if Ford were the entire economy).
Growth rate of nominal GDP: 14.78 %

c. Determine the growth rate of real GDP (if Ford were the entire economy).
Growth rate of real GDP: 7.74 %

d. Use the shortcut you learned to convert between real and nominal GDP growth rates to determine the growth rate of prices.
Growth rate of prices: 1.06 %

Sizing Up the Economy Using GDP — Work It Out

The table displays price and quantity information for two vehicle models produced by Ford Motor Company, the F-series trucks and Escape SUVs.

| | 2016 | 2017 |
| :— | :— | :— | :— | :— |
| | Price | Quantity | Price | Quantity |
| Escape SUVs | 24,485 | 307,069 |24,645 | 308,296 |
| F-series trucks | 44,400 | 820,799 |47,800 | 896,764 |

Round all numerical answers to two decimal places.

a. Calculate the amount contributed by Ford to U.S. real and nominal GDP from the sales of the two models in 2016 and 2017.

Nominal GDP 2016: 4.4 billion Nominal GDP 2017: 5.0 billion

Real GDP 2016: billion Real GDP 2017: 4.7 billion

b. Determine the growth rate of nominal GDP (if Ford were the entire economy).
Growth rate of nominal GDP: 14.78 %

c. Determine the growth rate of real GDP (if Ford were the entire economy).
Growth rate of real GDP: 7.74 %

d. Use the shortcut you learned to convert between real and nominal GDP growth rates to determine the growth rate of prices.
Growth rate of prices: 1.06 %

Added by Miriam F.

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