Question
In: Economics
A hypothetical economy produces only two items: maple syrup and trips to a local tourist attraction....
A hypothetical economy produces only two items: maple syrup and trips to a local tourist attraction. Calculate nominal GDP, real GDP, the Implicit price deflator, and inflation rate and fill in the corresponding columns in the following table:
Year
Price of Maple Syrup
Price of Trips
Quantity of Maple Syrup
Number of Trips
Nominal GDP
Real GDP
Implicit price deflator
Inflation
1
$11
$250
300
425
NA
2
$13
$258
310
570
3
$12
$260
324
550
4
$14
$262
410
580
No this question do not have any base year
Solutions
Expert Solution
Please give ratings it will be appreciable thank you
In this question we can assume year 1 is base year
Nominal GDP =current year price of of maple syrup*current year quantity of maple syrup + current year price of trips *current year quantity of trips
Real GDP =base year price of of maple syrup*current year quantity of maple syrup + base year price of trips *current year quantity of trips
deflator = (nominal GDP *100)/ real GDP
inflation = change in deflator
| year 1 | year 2 | year 3 | year 4 | |||||
| price | quantity | price | quantity | price | quantity | price | quantity | |
| Maple syrup | 11 | 300 | 13 | 310 | 12 | 324 | 14 | 410 |
| Trips | 250 | 425 | 225 | 570 | 260 | 550 | 262 | 580 |
| nominal GDP | 109550 | 132280 | 146888 | 157700 | ||||
| real GDP | 109550 | 145910 | 141064 | 149510 | ||||
| Price deflator | 100 | 90.7 | 104.1 | 105.5 | ||||
| inflation | NA | -9.3 | 4.1 | 5.5 |
Rahul Sunny answered 2 years agoRelated Solutions
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Use the information to answer the following questions:
ITEM
VALUE (million GHc)
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200
Tie-and-dye
400
Flour
950
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1000
Furniture
500
Palm Kernel
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