3. Suppose an economy has two years worth of data, years 1 and 2. Sup- pose there are also two goods, bread and corn. Suppose, in year one, 30 units of corn are sold at a price of 1 $ and 20 units of bread are sold at a price of 2 S. Suppose in year two, 60 units of corn are sold at a price of 1.5 $ and 80 units of bread are sold at a price of 4 $. Compute nominal GDP in both periods. Compute real GDP under both defini tions of a base year. Compute also a chain weighted real GDP series. For all three measures, compute the GDP deflator
3. Suppose an economy has two years worth of data, years 1 and 2. Sup- pose there are also two goods, bread and corn. Suppose, in year one, 30 units of corn are sold at a price of 1 $ and 20 units of bread are sold at a price of 2 S. Suppose in year two, 60 units of corn are sold at a price of 1.5 $ and 80 units of bread are sold at a price of 4 $. Compute nominal GDP in both periods. Compute real GDP under both defini tions of a base year. Compute also a chain weighted real GDP series. For all three measures, compute the GDP deflator
Principles of Macroeconomics (MindTap Course List)
7th Edition
ISBN:9781285165912
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter11: Measuring The Cost Of Living
Section: Chapter Questions
Problem 3PA
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Question
![3. Suppose an economy has two years worth of data, years 1 and 2. Sup-
pose there are also two goods, bread and corn. Suppose, in year one,
30 units of corn are sold at a price of 1 $ and 20 units of bread are sold
at a price of 2 S. Suppose in year two, 60 units of corn are sold at a
price of 1.5 $ and 80 units of bread are sold at a price of 4 $. Compute
nominal GDP in both periods. Compute real GDP under both defini
tions of a base year. Compute also a chain weighted real GDP series.
For all three measures, compute the GDP deflator](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F51fad9bb-0366-4e8c-8246-656d968a9d4f%2Fe4a5a732-80ec-4b0b-89ef-c8e2c065a161%2F4fpxpd.png&w=3840&q=75)
Transcribed Image Text:3. Suppose an economy has two years worth of data, years 1 and 2. Sup-
pose there are also two goods, bread and corn. Suppose, in year one,
30 units of corn are sold at a price of 1 $ and 20 units of bread are sold
at a price of 2 S. Suppose in year two, 60 units of corn are sold at a
price of 1.5 $ and 80 units of bread are sold at a price of 4 $. Compute
nominal GDP in both periods. Compute real GDP under both defini
tions of a base year. Compute also a chain weighted real GDP series.
For all three measures, compute the GDP deflator
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