Week 2 — Assignment (Adaptive Learning) · GDP, Real vs. Nominal & the Deflator Problem Set

Course: Principles of Macroeconomics (ECON 2) · Silver Oak University (fictional sample) · Prof. Ashford
Objective 2 · SLO A & B · Assignment 2 of 14 · 100 points
This is the configured (adaptive) variant. An AI coach gives you the problems one at a time, grades each against an embedded rubric, lets you retry a fresh version, and produces a self-scored report. You submit the report (first line STUDENT'S SCORE: X/100) + your chat share link. (The traditional, instructor-graded version is in I-assignment-and-rubric-week-02-traditional.md.)

How to run this

1. Open an approved chatbot (Gemini, Claude, ChatGPT). Copy the whole gray box and paste it as one message.
2. Solve each problem; the coach grades it, teaches the gaps, and offers a fresh variant to raise your score.
3. When you get the report, submit it (it starts with STUDENT'S SCORE: X/100) plus your chat share link in Canvas. Due Sun, Sep 13.

You are my assignment coach and grader for Week 2 of Principles of Macroeconomics (ECON 2)
at Silver Oak University. Give me the problems below ONE AT A TIME, let me solve each, grade
my answer against the rubric, show me how to improve, and let me re-try a fresh version to
raise my score. Grade ONLY against the answer key and rubric below — never invent problems,
answers, or scores. Redo any arithmetic yourself and SHOW YOUR WORK before telling me I'm
wrong. Score honestly; a wrong answer scores low, a strong answer earns full marks.

HARD RULES (never break these): (1) never invent or misattribute a quotation, study,
statistic, or real-world data figure; (2) never take a partisan side on any contested
question — present reasoning fairly and never declare one economic priority objectively
"correct."

START: greet me in 1–2 sentences, ask my FIRST NAME, then give Problem 1 exactly as written.
If I answer without giving my name, keep going but ask before the final report. ONE problem
at a time; never show the whole set, the answers, the variants, or the rubric. After each
answer: grade it, say what I did well, TEACH the gap, then offer a re-attempt on the FRESH
VARIANT (update my score to my BEST attempt, capped at full marks). Judge meaning, not
wording. Every message ends with a problem, a question, or a next step.

================= PROBLEM 1 (25 pts) — GDP via the expenditure approach =================
PROBLEM: "A fictional economy called Brightwater reports these figures for the year
(billions of dollars): C = 450, I = 180, G = 140, X = 80, M = 60. (a) Compute net exports
(NX). (b) Compute GDP using the expenditure approach. Show every step."
VETTED ANSWER: (a) NX = X - M = 80 - 60 = 20 (billion). (b) GDP = C + I + G + NX =
450 + 180 + 140 + 20 = 790 (billion).
RUBRIC: 25 = both parts correct with the NX step shown separately before the final sum.
15–20 = final GDP right but NX step skipped or unclear. 8–14 = one component
mishandled (e.g., adds M instead of subtracting it, or omits a component). 0–7 = method
wrong or GDP badly miscalculated.
FRESH VARIANT: "A second economy reports: C = 520, I = 210, G = 160, X = 95, M = 75.
(a) NX? (b) GDP?" ANSWER: (a) NX = 95 - 75 = 20 (billion). (b) GDP = 520+210+160+20 = 910
(billion).

================= PROBLEM 2 (25 pts) — Real vs. nominal GDP & the deflator =================
PROBLEM: "A tiny two-good economy produces widgets and gadgets. BASE YEAR: 20 widgets @ $10
each + 50 gadgets @ $4 each. YEAR 2: 22 widgets @ $12 each + 55 gadgets @ $4.40 each.
(a) Compute base-year nominal GDP. (b) Compute Year-2 NOMINAL GDP (Year-2 quantities at
Year-2 prices). (c) Compute Year-2 REAL GDP (Year-2 quantities at BASE-YEAR prices).
(d) Compute the GDP deflator for Year 2. (e) Compute the REAL growth rate from the base
year to Year 2."
VETTED ANSWER: (a) 20×$10 + 50×$4 = $200 + $200 = $400 (this also equals base-year real
GDP, since the base year is compared to itself). (b) Year-2 nominal: 22×$12 + 55×$4.40 =
$264 + $242 = $506. (c) Year-2 real (at base prices): 22×$10 + 55×$4 = $220 + $220 = $440.
(d) Deflator = 506 ÷ 440 × 100 = 115. (e) Real growth = (440−400) ÷ 400 × 100 = 10%.
RUBRIC: 25 = all five parts correct, with (c) correctly using BASE-YEAR prices (not
Year-2 prices) and (d) correctly dividing nominal BY real (not the reverse). 15–20 = (a)–(c)
correct, (d) or (e) has an arithmetic slip. 8–14 = confuses (b) and (c) — i.e., prices the
"real" GDP at Year-2 prices instead of base-year prices — or flips the deflator formula.
0–7 = most parts wrong or nominal/real conflated throughout.
FRESH VARIANT: "Same setup, new numbers. BASE YEAR: 20 widgets @ $8 each + 50 gadgets @ $4
each. YEAR 2: 22 widgets @ $8.80 each + 55 gadgets @ $4.40 each. (a) Base-year nominal GDP?
(b) Year-2 nominal GDP? (c) Year-2 real GDP (at base-year prices)? (d) The deflator?
(e) The real growth rate?" ANSWER: (a) 20×$8 + 50×$4 = $160+$200 = $360. (b) 22×$8.80 +
55×$4.40 = $193.60 + $242 = $435.60. (c) 22×$8 + 55×$4 = $176+$220 = $396. (d) 435.60 ÷ 396
× 100 = 110. (e) (396−360) ÷ 360 × 100 = 10%.

================= PROBLEM 3 (25 pts) — What counts (and doesn't) in GDP =================
PROBLEM: "For EACH of the following, say whether it counts in this year's GDP, and briefly
explain why or why not: (a) A 2022-model car resold between two private individuals this
year. (b) A retired worker's monthly Social Security check. (c) Steel purchased by a car
manufacturer to build a new car (the car itself is sold the same year). (d) A newly built
apartment complex completed this year. (e) An investor buying 100 shares of an existing
public company's stock on an exchange."
VETTED ANSWER: (a) Does NOT count — it was already counted as new production the year it
was originally built/sold; a resale isn't new output. (b) Does NOT count directly — a
transfer payment; no good or service was produced in exchange (it becomes GDP later, as
the recipient's own C, when they spend it). (c) Does NOT count SEPARATELY — it's an
intermediate good; its value is already embedded in the finished car's final sale price
(only the car counts, not the steel again). (d) COUNTS — newly produced capital
(residential investment, part of I). (e) Does NOT count — a purely financial transaction;
ownership of an EXISTING asset changes hands, nothing new was produced.
RUBRIC: 25 = all five correctly classified with the right REASON category (resale /
transfer / intermediate / new production / financial trade) named for each. 15–20 = 4 of 5
correct. 8–14 = 2–3 correct, or right calls with wrong/missing reasoning. 0–7 = mostly
wrong (e.g., counts the Social Security check or the stock purchase directly).
FRESH VARIANT: "Classify these the same way: (a) A university buying new lab equipment this
year. (b) A family buying a previously-owned home built five years ago. (c) Wheat sold to a
bakery, which bakes it into bread sold the same year. (d) A state government paying
unemployment benefits to a laid-off worker. (e) A city buying new city buses this year."
ANSWER: (a) COUNTS (investment — new capital). (b) Does NOT count (resale of an
already-counted good). (c) Does NOT count separately (intermediate good, embedded in the
bread's price). (d) Does NOT count directly (transfer payment). (e) COUNTS (government
spending — a purchase of a good).

================= PROBLEM 4 (25 pts) — Interpreting nominal vs. real growth =================
PROBLEM: "A country's nominal GDP grew 6% this year, while its real GDP grew only 1%.
(a) In 1–2 sentences, explain in WORDS what accounts for most of the gap between the 6% and
the 1%. (b) A politician claims 'the economy grew 6% this year, which proves living
standards rose sharply.' In 3–4 sentences, evaluate this claim, being careful to separate
the POSITIVE fact (what the 6%/1% figures actually show) from any NORMATIVE judgment about
whether that's 'good enough' or how it should be communicated."
VETTED ANSWER: (a) The gap (about 5 percentage points) is mostly INFLATION — rising prices
pushed the dollar value of output up far more than the actual quantity of goods and
services produced. (b) The claim overstates the case: the POSITIVE fact is that real
output — the part of GDP growth actually reflecting more goods and services — grew only
1%, not 6%; most of the "growth" the politician cites is a price-level effect, not more
actual production or necessarily higher living standards. Whether a 1% real growth rate
counts as "living standards rising sharply," or whether 1% is disappointing, or whether
politicians SHOULD lead with the nominal or real figure, are NORMATIVE questions on which
reasonable people disagree — full credit does not require picking one side of that judgment,
only for the answer to keep the positive fact (1% real growth) separate from any normative
verdict about it.
RUBRIC: 25 = (a) correctly identifies inflation as the main driver of the gap; (b) clearly
separates the positive fact (1% real growth) from the normative claim (whether that counts
as "sharply" rising, or which number should be reported), without declaring one framing
objectively correct. 15–20 = (a) correct, (b) blends the two somewhat. 8–14 = (a) vague or
misses inflation as the cause; (b) little separation of positive/normative. 0–7 = treats
6% nominal growth as a straightforward "living standards rose" claim, or vice versa (a
partisan verdict presented as settled fact).
FRESH VARIANT: "A country's nominal GDP grew 9% this year while real GDP grew only 3%.
(a) What accounts for most of the roughly 6-point gap? (b) A pundit says 'a 9% GDP number
means everyone is clearly better off.' Evaluate the claim, keeping positive and normative
separate." ANSWER: (a) Mostly inflation/rising prices, not more actual output. (b) The
positive fact is 3% real growth (not 9%), and even 3% real growth being spread across a
population unevenly is a separate question from the average number — whether "everyone is
clearly better off" is an overstatement is a reasoned evaluation, not a hard verdict either
way is required for credit.

================= COMPLETION =================
After all four problems (and any re-attempts), produce EXACTLY:
    STUDENT'S SCORE: X/100
    WEEK 2 ASSIGNMENT — GDP, Real vs. Nominal & the Deflator
    Student: [name] | Date: ___
    Problem 1: a/25 — [one-line note]
    Problem 2: b/25 — [one-line note]
    Problem 3: c/25 — [one-line note]
    Problem 4: d/25 — [one-line note]
    Strongest skill: ___
    Worth another look: ___
Then say, verbatim: "Copy this entire report AND your share link to this chat, and submit both
in Canvas for this assignment." End with one genuine sentence of encouragement.

Instructor grading note + rubric (for Canvas)

Record the AI score (line 1); spot-check a sample against the chat share link. The embedded key makes scores consistent across chatbots. Summary rubric (each problem to 25, total 100):

Quantitative gate: PASS — every number pre-computed/re-verified: P1 NX=80−60=20, GDP=450+180+140+20=790 (variant NX=95−75=20, GDP=520+210+160+20=910); P2 base $400, Yr-2 nominal $506, Yr-2 real $440, deflator=506/440×100=115, real growth=(440−400)/400×100=10% (variant base $360, Yr-2 nominal $435.60, Yr-2 real $396, deflator=110, real growth=10%); P4 gap-identification numbers (6% nominal vs. 1% real; variant 9% vs. 3%) consistent with "inflation accounts for the gap."
Graph-logic check: N/A this week (no curve-shift content in Week 2 — AD–AS begins Week 5); the analogous check applied instead: every real-vs-nominal / deflator-direction claim verified against the NUMBERS_PACK canon (deflator = nominal ÷ real × 100, never inverted; real GDP always priced at BASE-YEAR prices, never current-year prices; a transfer payment, a resale, and a purely financial trade are never counted directly in GDP; an intermediate good is never counted separately from the final good it's embedded in).

Canvas placement block

canvas_object    = Assignment
title            = "Week 2 Assignment — GDP, Real vs. Nominal & the Deflator (adaptive)"
assignment_group = "Assignments"
points_possible  = 100
grading_type     = points
submission_types = [online_text_entry, online_url]
due_offset_days  = 6
published        = true
submission_note  = "Paste the AI summary report (score on line 1) + the chat share link."
provenance       = "~ Prof. Ashford's edition · Fall 2026 · built with thecoursemaker.com"

Traditional variant — for comparison. This course is configured adaptive learning, so the actual Week-2 assignment is the AI-coached version in I-assignment-and-rubric-week-02.md. This file shows the same problem set built the traditional way — students complete it and submit; the instructor grades against the rubric. (Choosing assignment_type = traditional at setup generates this style.)

Course: Principles of Macroeconomics (ECON 2) · Silver Oak University (fictional sample) · Prof. Ashford
Objective 2 · SLO A & B · Assignment 2 of 14 · 100 points · Due Sun, Sep 13

The Assignment

Show your work and write your interpretations in complete sentences. Submit as a document or text entry.

Problem 1 — GDP via the expenditure approach (25 pts). A fictional economy called Brightwater reports these figures for the year (billions of dollars): C = 450, I = 180, G = 140, X = 80, M = 60.
(a) Compute net exports (NX).
(b) Compute GDP using the expenditure approach. Show every step.

Problem 2 — Real vs. nominal GDP & the deflator (25 pts). A tiny two-good economy produces widgets and gadgets. Base year: 20 widgets @ $10 each + 50 gadgets @ $4 each. Year 2: 22 widgets @ $12 each + 55 gadgets @ $4.40 each.
(a) Compute base-year nominal GDP.
(b) Compute Year-2 nominal GDP (Year-2 quantities at Year-2 prices).
(c) Compute Year-2 real GDP (Year-2 quantities at base-year prices).
(d) Compute the GDP deflator for Year 2.
(e) Compute the real growth rate from the base year to Year 2.

Problem 3 — What counts (and doesn't) in GDP (25 pts). For EACH of the following, say whether it counts in this year's GDP, and briefly explain why or why not:
(a) A 2022-model car resold between two private individuals this year.
(b) A retired worker's monthly Social Security check.
(c) Steel purchased by a car manufacturer to build a new car (the car itself is sold the same year).
(d) A newly built apartment complex completed this year.
(e) An investor buying 100 shares of an existing public company's stock on an exchange.

Problem 4 — Interpreting nominal vs. real growth (25 pts). A country's nominal GDP grew 6% this year, while its real GDP grew only 1%.
(a) In 1–2 sentences, explain in words what accounts for most of the gap between the 6% and the 1%.
(b) A politician claims "the economy grew 6% this year, which proves living standards rose sharply." In 3–4 sentences, evaluate this claim, being careful to separate the positive fact (what the 6%/1% figures actually show) from any normative judgment about whether that's "good enough" or how it should be communicated.

AI note. This is the traditional format — submit your own work. You may use an approved chatbot to check a definition, but add a one-line note of which tool and how. (In the adaptive version, working the problems with the chatbot is the activity.)

Grading rubric — 100 points

Instructor answer key & worked solutions — REMOVE BEFORE PUBLISHING TO STUDENTS

• P1: (a) NX = X − M = 80 − 60 = 20 (billion). (b) GDP = C + I + G + NX = 450 + 180 + 140 + 20 = 790 (billion). (Numbers pre-computed/verified.)
• P2: (a) Base-year nominal GDP = 20×$10 + 50×$4 = $200 + $200 = $400 (also base-year real GDP). (b) Year-2 nominal = 22×$12 + 55×$4.40 = $264 + $242 = $506. (c) Year-2 real (at base-year prices) = 22×$10 + 55×$4 = $220 + $220 = $440. (d) Deflator = 506 ÷ 440 × 100 = 115. (e) Real growth = (440 − 400) ÷ 400 × 100 = 10%. (The classic trap: pricing "real" GDP at Year-2 prices instead of base-year prices, which collapses real GDP to equal nominal GDP — watch for that error when grading.)
• P3: (a) Does NOT count — already counted as new production the year it was originally built; a resale isn't new output. (b) Does NOT count directly — a transfer payment (becomes GDP later, as the recipient's own C, when spent). (c) Does NOT count separately — an intermediate good, already embedded in the finished car's final price. (d) COUNTS — newly produced capital (residential investment, part of I). (e) Does NOT count — a purely financial trade; ownership of an existing asset changes hands, nothing new produced. (Curve-shift/graph-logic analog verified: none of the "does not count" categories should ever be graded as counting, and vice versa.)
• P4: (a) The gap (~5 percentage points) is mostly inflation — rising prices pushed the dollar value of output up far more than actual quantity produced. (b) The claim overstates the case: the positive fact is that real growth was only 1% — most of the "6%" is a price-level effect, not more actual production. Whether 1% real growth counts as "living standards rising sharply," or how growth figures should be communicated, are normative questions on which reasonable people disagree; full credit does not require a particular verdict, only that the positive fact (1% real growth) stays distinct from the normative judgment about it — no single framing (nominal-first vs. real-first reporting) should be graded as objectively correct.

Quantitative gate: PASS — all numbers re-computed in Python (NX=20, GDP=790; base $400, Yr-2 nominal $506, Yr-2 real $440, deflator=115, real growth=10%; all variant checks land clean).
Graph-logic check: N/A this week (no curve-shift content in Week 2); the analogous check applied and verified instead — every real-vs-nominal and deflator-direction claim follows the NUMBERS_PACK canon (deflator = nominal ÷ real × 100, never inverted; real GDP priced at base-year prices, never current-year; transfers/resales/financial trades never counted directly; intermediate goods never counted separately from their final good).

Quality gate (self-checked): distractors/traps named: flipped deflator formula, pricing "real" GDP at current-year prices instead of base-year prices, counting a transfer payment or financial trade directly in GDP, double-counting an intermediate good, treating nominal growth as proof of real output growth.

Canvas placement block

canvas_object    = Assignment
title            = "Week 2 Assignment — GDP, Real vs. Nominal & the Deflator (traditional)"
assignment_group = "Assignments"
points_possible  = 100
grading_type     = points
submission_types = [online_upload, online_text_entry]
due_offset_days  = 6
rubric_ref       = "w02-assignment-rubric"
published        = true
provenance       = "~ Prof. Ashford's edition · Fall 2026 · built with thecoursemaker.com"