Consider an economy that produces three goods: Goods 2018 2018 2019 2019 2020 2020 Produced Price Quantity Price Quantity Price Quantity Chocolate $2 $3 3 $2 $1 $3 $4 4 3 Cheese 2 3 Watches $4 5 $3 6 $4 4 *Assume the population of the economy didn't change during 2018-2020 *All the answers here are rounded up to two decimal places a. Calculate the nominal GDPS for each year: 2018: 2019: 2020: b. Real GDP (Use 2018 as the base year) 2018: 2019: 2020: c. (R)GDP growth rate for 2018 – 2019 (Using 2018 as the base year): d. (R)GDP growth rate for 2018 – 2019 (Using 2019 as the base year): e. Are the growth rates from c. and d. different? Why? f. GDP deflator (Use 2018 as the base year) 2018: 2019: 2020:
Consider an economy that produces three goods: Goods 2018 2018 2019 2019 2020 2020 Produced Price Quantity Price Quantity Price Quantity Chocolate $2 $3 3 $2 $1 $3 $4 4 3 Cheese 2 3 Watches $4 5 $3 6 $4 4 *Assume the population of the economy didn't change during 2018-2020 *All the answers here are rounded up to two decimal places a. Calculate the nominal GDPS for each year: 2018: 2019: 2020: b. Real GDP (Use 2018 as the base year) 2018: 2019: 2020: c. (R)GDP growth rate for 2018 – 2019 (Using 2018 as the base year): d. (R)GDP growth rate for 2018 – 2019 (Using 2019 as the base year): e. Are the growth rates from c. and d. different? Why? f. GDP deflator (Use 2018 as the base year) 2018: 2019: 2020:
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Part a to d
Transcribed Image Text:Consider an economy that produces three goods:
Goods
2018
2018
2019
2019
2020
2020
Produced
Price
Quantity
3
Quantity
Quantity
Price
Price
Chocolate
$2
$3
$2
$1
$3
$4
4
3
Cheese
2
3
2
Watches
$4
5
$3
6
$4
4
*Assume the population of the economy didn't change during 2018-2020
*All the answers here are rounded up to two decimal places
Calculate the nominal GDPS for each year:
a.
2018:
2019:
2020:
b. Real GDP (Use 2018 as the base year)
2018:
2019:
2020:
c. (R)GDP growth rate for 2018 – 2019 (Using 2018 as the base year):
d. (R)GDP growth rate for 2018 – 2019 (Using 2019 as the base year):
Are the growth rates from c. and d. different? Why?
е.
f. GDP deflator (Use 2018 as the base year)
2018:
2019:
2020:
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