Principles of Macroeconomics (MindTap Course List)
7th Edition
ISBN:9781285165912
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Measuring A Nation's Income
Section: Chapter Questions
Problem 9PA
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Question
/
![ES
Consider an economy that produces maize and bicycles. The following Table shows production
and price information in this economy in 2015 and 2020.
Price of a bicycle
Price of a bag of maize
Number of bicycles
Number of bags of maize
2015
500
100
70000
50000
2020
650
120
85000
52000
Now answer the questions that follow.
a) Using 2015 as the base year, compute the following statistics: nominal GDP, real GDP,
and the implicit price deflator
b) By how much have prices risen between 2015 and 2020](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96b6c190-af9c-4cfb-bfe0-dca6b5c7508c%2F8e504e43-8cff-4434-8cce-c4622c2d7828%2F7wmroog_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ES
Consider an economy that produces maize and bicycles. The following Table shows production
and price information in this economy in 2015 and 2020.
Price of a bicycle
Price of a bag of maize
Number of bicycles
Number of bags of maize
2015
500
100
70000
50000
2020
650
120
85000
52000
Now answer the questions that follow.
a) Using 2015 as the base year, compute the following statistics: nominal GDP, real GDP,
and the implicit price deflator
b) By how much have prices risen between 2015 and 2020
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