Suppose that James’s income in Year 1 was $40,000. Over the next four years his income increases by 7% per year. At the same time, the economy experiences an inflation rate of 5% per year.  a. Complete the table below. Do not round your intermediate calculations. Enter your final responses as a whole number for Nominal income and Real income. Enter your final responses for the price index rounded to one decimal place. Year Nominal income Price index Real income1 $40,000 100 $ 2 3 4 5 b. At the end of Year 5, James’s real income will be $ .

Consider an economy that produces only good A and good B. In year 1, this economy produced 12,000 units of good A and 8,000 units of good B. In year 2, this economy produced 11,000 units of good A and 8,500 units of good B. The per unit prices in each year are given in the table below. Year 1 Year 2Good A $500 $300Good B $550 $350Assuming year 1 to be the base year, find the level of inflation using GDP deflators. Group of answer choices9.8%12.11%10.1%13.7%

If your nominal income in 2014 was $50,000, and prices doubled between 2014 and 2017,to have the same real income, your nominal income in 2017 must beA) $50,000.B) $75,000.C) $90,000.D) $100,000.

If the nominal interest rate is 8% and the inflation rate is 5%. Using the relevant real interest rate formula, what is the future value of an $1500 investment in one year?

Suppose that in 1984 the total output in a single-good economy was 7,000 buckets of chicken. Also suppose that in 1984 each bucket of chicken was priced at $10. Finally, assume that in 2005 the price per bucket of chicken was $16 and that 22,000 buckets were produced. Instructions: In part a, enter your answer as an index number rounded to 1 decimal place. In parts b-c, enter your answers as whole numbers. a. What is the GDP price index for 1984, using 2005 as the base year? . b. By what percentage did the price level, as measured by this index, rise between 1984 and 2005?  percent. c. What were the amounts of real GDP in 1984 and 2005?      In 1984, real GDP = $ .      In 2005, real GDP = $ .

Suppose that nominal GDP in an economy in year 1 is $500 million and in year 2 is $600 million. If the price level of the goods and services produced has increased from an index number of 120 to an index number of 130 then, Group of answer choiceswhile nominal GDP increased between year 1 and year 2, real GDP must have decreased.while nominal GDP has decreased between year 1 and year 2, real GDP must have increased.while prices of the goods and services have increased by 10% between year 1 and year 2, real GDP has decreased by only 5%.while there has been inflation over this period, real GDP has still increased.