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Good 2010 2018 Quantity Price Quantity Price Hot dogs 11305200 $2 250 $4 Hamburgers 200 $3 500 $4 a. Using 2010 as the base year, compute the following statistics for each year: nominal GDP real GDP, the implicit price deflator for GDP, and the CPL. b. By what percentage did prices rise between 2010 and 2018? Give the answer for each good and also for the two measures of the overall price level. Compare the answers given by the Laspeyres and Paasche price indexes. Explain the difference.

Good 2010 2018 Quantity Price Quantity Price Hot dogs 11305200 $2 250 $4 Hamburgers 200 $3 500 $4 a. Using 2010 as the base year, compute the following statistics for each year: nominal GDP real GDP, the implicit price deflator for GDP, and the CPL. b. By what percentage did prices rise between 2010 and 2018? Give the answer for each good and also for the two measures of the overall price level. Compare the answers given by the Laspeyres and Paasche price indexes. Explain the difference.

Macroeconomics: Private and Public Choice (MindTap Course List)
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Taking The Nation's Economic Pulse
Section: Chapter Questions
Problem 6CQ
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Good 2010 2018 Quantity Price Quantity Price Hot dogs 11305200 $2 250 $4 Hamburgers 200 $3 500 $4 a. Using 2010 as the base year, compute the following statistics for each year: nominal GDP real GDP, the implicit price deflator for GDP, and the CPL. b. By what percentage did prices rise between 2010 and 2018? Give the answer for each good and also for the two measures of the overall price level. Compare the answers given by the Laspeyres and Paasche price indexes. Explain the difference.
Transcribed Image Text:Good 2010 2018 Quantity Price Quantity Price Hot dogs 11305200 $2 250 $4 Hamburgers 200 $3 500 $4 a. Using 2010 as the base year, compute the following statistics for each year: nominal GDP real GDP, the implicit price deflator for GDP, and the CPL. b. By what percentage did prices rise between 2010 and 2018? Give the answer for each good and also for the two measures of the overall price level. Compare the answers given by the Laspeyres and Paasche price indexes. Explain the difference.
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