There are only three sectors (X. Y, Z) in the economy of a small island.

a) Calculate the Nominal GDP, Real GDP, GDP deflator, and Economic growth for the each year. The base year is 2009

b) Briefly define the term GDP and explain some of the limitations of the GDP statistic.

c) Briefly explain what Economist mean when they use the term "business cycle"? Please include its components. In the table above identify the years of growth and the years that experienced a recession.

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Expert Solution

Nominal GDP is the production of goods and services at current prices whereas Real GDP is the production of goods and services valued at constant prices. GDP deflator is a measure of price level calculated as the ratio of nominal GDP to real GDP times 100.

Rahul Sunny answered 1 year ago

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​There are only three sectors (X. Y, Z) in the economy of a small island.

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There are only three sectors (X. Y, Z) in the economy of a small island.