2. GDP Year Price of Tacos 2020 $1 2021 $1 2022 $2 Quantity of Price of Tacos Pizza 100 150 200 $5 $6 $8 Quantity of Pizza 50 50 100 a. Given the data above for a local economy, compute nominal GDP. real GDP, and the GDP deflator for each year, using 2020 as the base year. b. Compute the percentage change in nominal GDP, real GDP, and the GDP deflator in 2021 and 2022 from the preceding year. c. Did economic well-being increase more in 2021 or 2022? Explain.

2. GDP Year Price of Tacos 2020 $1 2021 $1 2022 $2 Quantity of Price of Tacos Pizza 100 150 200 $5 $6 $8 Quantity of Pizza 50 50 100 a. Given the data above for a local economy, compute nominal GDP. real GDP, and the GDP deflator for each year, using 2020 as the base year. b. Compute the percentage change in nominal GDP, real GDP, and the GDP deflator in 2021 and 2022 from the preceding year. c. Did economic well-being increase more in 2021 or 2022? Explain.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose in year 1 that a country’s economy produces 5 memes at $1 ameme and 7 tacos at $0.50 a taco. In year 2, that country produces 10 memesat $2 a meme and 10 tacos at $0.75 a taco.A) Calculate nominal GDP for both years.B) Calculate real GDP using prices from year 1 as the base year.
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a. Using the following table to calculate GDP price deflator in 2021 and 2022, and the change in overall price level from 2021 to 2022 nominal GDP in 2021 was $104,000 in 2022 was $112,000 real GDP in 2021 was $84,000 and in 2022, $88,000 b. Consider an economy, only producing two good Apple and orange in both year one need to Ken the real GDP of this economy, increase between one and two, while the nominal GDP decreases or remain the same explain your answer with a numerical example Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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Transcribed Image Text:The price and quantity data for Year 1 and Year 2 are as follows: Bread 50 1 Butter 100 Year 1 Quantity Year 1 Price Year 2 Quantity Year 2 Price 80 120 1.60 1.25 What is the ratio of real GDP in year 2 to real GDP in year 1, using year 1 as the base year? Answer Choices: 1.254 b. 1.354 1.434 d. 1.534 a. C. Acivate Windcys