A country makes goods Y and Zin Years 1 and 2 at the quantities and prices shown below. The implicit price deflator in Year 1 is 177. Quantity Price Y 55 138 Year 1 Z 183 47 Use the chain-link method for the base prices. Question 1.3: GDP at base prices What is the GDP in Year 1 at the base prices? Y 67 164 Year 2 N 133 67
A country makes goods Y and Zin Years 1 and 2 at the quantities and prices shown below. The implicit price deflator in Year 1 is 177. Quantity Price Y 55 138 Year 1 Z 183 47 Use the chain-link method for the base prices. Question 1.3: GDP at base prices What is the GDP in Year 1 at the base prices? Y 67 164 Year 2 N 133 67
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Measuring A Nation's Income
Section: Chapter Questions
Problem 6PA
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Question
![[The following scenario applies to the next three questions:]
A country makes goods Y and Z in Years 1 and 2 at the quantities and prices shown below. The implicit price
deflator in Year 1 is 177.
Quantity
Price
Y
55
138
Use the chain-link method for the base prices.
Question 1.4: Real GDP
Question 1.3: GDP at base prices
What is the GDP in Year 1 at the base prices?
A. 18,501.50
B. 18,736.00
C. 18,859.50
D. 19,081.50
E. 19,192.00
What is Real GDP in Year 2?
A. 8,208.64
B. 8,640.68
C. 9,072.71
D. 9,504.74
E. 9,936.78
Year 1
D. 218.78
E. 230.29
Z
183
47
Question 1.5: Implicit price deflator
What is the implicit price deflator in Year 2?
A. 184.24
B. 195.75
C. 207.27
Y
67
164
Year 2
Z
133
67](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc0eba744-2ca5-4b9b-b356-631e195ec79e%2Fa1c9c90a-7cd6-4a9e-b8c8-7e03c4b02847%2Ffezpve_processed.png&w=3840&q=75)
Transcribed Image Text:[The following scenario applies to the next three questions:]
A country makes goods Y and Z in Years 1 and 2 at the quantities and prices shown below. The implicit price
deflator in Year 1 is 177.
Quantity
Price
Y
55
138
Use the chain-link method for the base prices.
Question 1.4: Real GDP
Question 1.3: GDP at base prices
What is the GDP in Year 1 at the base prices?
A. 18,501.50
B. 18,736.00
C. 18,859.50
D. 19,081.50
E. 19,192.00
What is Real GDP in Year 2?
A. 8,208.64
B. 8,640.68
C. 9,072.71
D. 9,504.74
E. 9,936.78
Year 1
D. 218.78
E. 230.29
Z
183
47
Question 1.5: Implicit price deflator
What is the implicit price deflator in Year 2?
A. 184.24
B. 195.75
C. 207.27
Y
67
164
Year 2
Z
133
67
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