1. In an economy, there are only two goods (Cars and Cycles) produced. The data for last four years is given in the below table. Calculate the nominal and real GDP of four years and then find the GDP deflator for all these years. Find year on year (YoY) inflation for 2019 and 2020. Note: 2018 is the base year for this economy --- Cars Cycles Year Price of Car Number Number (AED) of Cars Price of cycle (AED) of Cycles 2017 1000 18 200 900 2018 1200 19 210 1000 2019 1500 25 250 1300 2020 1700 35 255 1500

1. In an economy, there are only two goods (Cars and Cycles) produced. The data for last four years is given in the below table. Calculate the nominal and real GDP of four years and then find the GDP deflator for all these years. Find year on year (YoY) inflation for 2019 and 2020. Note: 2018 is the base year for this economy --- Cars Cycles Year Price of Car Number Number (AED) of Cars Price of cycle (AED) of Cycles 2017 1000 18 200 900 2018 1200 19 210 1000 2019 1500 25 250 1300 2020 1700 35 255 1500

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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