The table below is extracted from Happy land Republic,Bureau of Statistics records for 2018-2019. Use theinformation in this table to answer the questions thatfollow.ItemBase year (2015)2016Production Price Production Price5,000 2000.008,000 500.006,000 2,50010,000 1200.00Used car salesFactory components salesCloth salesBeef salesMilk litres salesComputers salesPrinters salesRawassembling plant sales8,00020.0014,00035.001,50010.001,80012.005,0001.306,0002.502000 500.00500 300.002500 800.00400 355.00materials fortractor4500 250.004450 300.00i. Calculate Happy Land Republic's nominal GDP andreal GDP in 2016ii. Why does real GDP always defer from nominalGDP?

GDP excludes used goods, intermediate goods and production inputs, so only the values of Cloth,…

Answered: i. Calculate Happy Land Republic's…

i. Calculate Happy Land Republic's nominal GDP and real GDP in 2016 ii. Why does real GDP always defer from nominal GDP?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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