2. Based on the table below: (3 points) Year

2015

2016

2017

Price of bread

1$

1.5$

3$

Quantity of bread

1000

1500

1800

Price of corn

10$

12$ 8$

Quantity of corn

200

400

500

a) Compute nominal GDP, real GDP, and the GDP deflator for each year, using 2015 as the base

year.

Basics of Business and Economics

Quiz N3

b) Compute the percentage change in nominal GDP, real GDP, and the GDP deflator in 2017

from the preceding year. c) Did economic well-being rise in 2017 compared to previous year? Explain.​

Suppose portugal has 700 workers and 26,000 units of capital, and france has 18,000 workers and 700 units of capital. technology is identical in both countries. assume that wine is the capital-intensive good and cloth is the labor-intensive good. which of the following statements is correct if the nations start trading with each other? a) wages will increase in portugal.b) rental rates in france will increase.c) wages in france will decrease.d) rental rates in portugal will increase.

A$100 million interest rate swap has a remaining life of 10 months. under the terms of the swap, the six-month libor is exchanged semi-annually for 12% per annum. the six-month libor rate in swaps of all maturities is currently 10% per annum with continuous compounding. the six-month libor rate was 9.6% per annum two months ago. what is the current value of the swap to the party paying floating? what is its value to the party paying fixed?

Which of the following tends to result in a decrease in the selling price of houses in an area? a. an increase in the population of the city or town. b. an increase in the labor costs of construction. c. an increase in the income of new residents in the city or town. d. an increase in mortgage interest rates.