6. Country A produces Car (final good), Engine (intermediate good) and milk (final good), and imports Pizza. The table below shows the prices and production levels of Car, Engine and Milk, and the prices of Pizza in two years. The consumption basket of the typical consumer in A consists of one Car, 8 milk and 5 Pizza. Year 2 is the base year. If you need to round your answer, round it off to two decimal places. P of Engine Q of Engine P of Milk Q of Milk P of Car 200 Qof Car 20 40 60 1 100 220 30 50 50 2 110 6.a. Answer A's GDP deflator in year 1. Year 1 Year 2 6.b. Answer CPI in year 1. Pof Pizza 3 3
6. Country A produces Car (final good), Engine (intermediate good) and milk (final good), and imports Pizza. The table below shows the prices and production levels of Car, Engine and Milk, and the prices of Pizza in two years. The consumption basket of the typical consumer in A consists of one Car, 8 milk and 5 Pizza. Year 2 is the base year. If you need to round your answer, round it off to two decimal places. P of Engine Q of Engine P of Milk Q of Milk P of Car 200 Qof Car 20 40 60 1 100 220 30 50 50 2 110 6.a. Answer A's GDP deflator in year 1. Year 1 Year 2 6.b. Answer CPI in year 1. Pof Pizza 3 3
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Country A produces Car (final good), Engine (intermediate good) and milk (final good), and imports Pizza.
The table below shows the prices and production levels of Car, Engine and Milk, and the prices of Pizza in
two years. The consumption basket of the typical consumer in A consists of one Car, 8 milk and 5 Pizza. Year
2 is the base year. If you need to round your answer, round it off to two decimal places.
P of Car Q of Car P of Engine Q of Engine P of Milk Q of Milk P of Pizza
Year 1 200 20 40 60 1 100 3
Year 2 220 30 50 50 2 110 3
6.a. Answer A’s GDP deflator in year 1.
6.b. Answer CPI in year 1.
Transcribed Image Text:6. Country A produces Car (final good), Engine (intermediate good) and milk (final good), and imports Pizza.
The table below shows the prices and production levels of Car, Engine and Milk, and the prices of Pizza in
two years. The consumption basket of the typical consumer in A consists of one Car, 8 milk and 5 Pizza. Year
2 is the base year. If you need to round your answer, round it off to two decimal places.
P of Car
P of Milk
Qof Car
20
P of Engine Q of Engine
40
Qof Milk
100
60
1
30
50
50
2
110
6.a. Answer A's GDP deflator in year 1.
Year 1
Year 2
200
220
6.b. Answer CPI in year 1.
P of Pizza
3
3
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