Consider an economy where three goods are produced: strawberries, ice creams and coolers. Of these three goods, only strawberries and ice cream are consumer goods, that is, only strawberries and ice creams are purchased by consumers. Coolers, the third type of good, are also final goods, but they are purchased by businesses only, not households. The total quantities (produced and consumed) and prices are presented in the table below: (a) Calculate nominal GDP for the years 2017, 2018 and 2019. (b) Calculate real GDP, expressed in dollars of the year 2017, for the years 2017, 2018 and 2019 Using 2018 as the base year, calculate the CPI inflation rate between the years 2017 and 2018, and between 2018 and 2019.
Consider an economy where three goods are produced: strawberries, ice creams and coolers. Of these three goods, only strawberries and ice cream are consumer goods, that is, only strawberries and ice creams are purchased by consumers. Coolers, the third type of good, are also final goods, but they are purchased by businesses only, not households. The total quantities (produced and consumed) and prices are presented in the table below:
(a) Calculate nominal
(b) Calculate real GDP, expressed in dollars of the year 2017, for the years 2017, 2018 and 2019
Using 2018 as the base year, calculate the
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