Question

In: Economics

Question 2 (a) The output and prices in an economy that produces only 3 goods are...

Question 2
(a) The output and prices in an economy that produces only 3 goods are as given in the table below.
Use the information in the table to answer the questions that follow. [Show your calculations.]
Good
Price:
2017
Number of
Goods
(millions):
2017
Price:
2018
Number of
Goods:
2018
Packs of bottled water $4.00 15 $4.30 17
Kilos of Apples $3.00 5 $3.20 7
Bags of Potatoes $5.00 7 $5.30 9
(i) Find the nominal GDP in 2018.
(ii) Find the Real GDP in 2018.
(iii) Find the GDP Deflator in 2018.
(iv) Growth Rate of Real GDP

Solutions

Expert Solution

Description:- If the price and quantity that I arrange in the table below is same as the price and quantity give in the Question then,  

Nominal GDP (2018)= $143.2

Real GDP(2018) =$134

GDP deflator(2018)= $106.9

Growth rate of Real GDP= 21.81%

Rahul Sunny answered 2 years ago
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