1. Suppose the economy produces three goods: bread, juice, and carrots. The table below shows the price and quantity of each good in 2015 and 2020. Goods Bread Juice Carrots 2015 Price per unit (P) 2.5 15 20 Quantity 25 pieces 20 cartons 10 kilos 2020 Price per unit (P) 3 15.5 26 Quantity 30 pieces 26 cartons 15 kilos a) What is the nominal GDP growth (%) between 2015 and 2020? b) Using 2015 prices as the base-year prices, what is the real GDP growth (%) between 2015 and 2020? c) If real GDP is calculated using 2015 prices, what is the GDP deflator in 2020?

1. Suppose the economy produces three goods: bread, juice, and carrots. The table below shows the price and quantity of each good in 2015 and 2020. Goods Bread Juice Carrots 2015 Price per unit (P) 2.5 15 20 Quantity 25 pieces 20 cartons 10 kilos 2020 Price per unit (P) 3 15.5 26 Quantity 30 pieces 26 cartons 15 kilos a) What is the nominal GDP growth (%) between 2015 and 2020? b) Using 2015 prices as the base-year prices, what is the real GDP growth (%) between 2015 and 2020? c) If real GDP is calculated using 2015 prices, what is the GDP deflator in 2020?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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