Let GDP (Gross Domestic Product) as a simplification, only be one good, apples. Find the 100 and real GDP = 20 and explain these three numbers GDP deflator if nominal GDP %3D using apples as an example. As a follow up from part e), suppose the nominal GDP growth rate = 7 % and the GDP deflator inflation= 3%. Find the real GDP growth rate and explain the three numbers using apples as an example.
Let GDP (Gross Domestic Product) as a simplification, only be one good, apples. Find the 100 and real GDP = 20 and explain these three numbers GDP deflator if nominal GDP %3D using apples as an example. As a follow up from part e), suppose the nominal GDP growth rate = 7 % and the GDP deflator inflation= 3%. Find the real GDP growth rate and explain the three numbers using apples as an example.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![e) Let GDP (Gross Domestic Product) as a simplification, only be one good, apples. Find the
GDP deflator if nominal GDP = 100 and real GDP = 20 and explain these three numbers
using apples as an example.
f) As a follow up from part e), suppose the nominal GDP growth rate = 7% and the GDP
deflator inflation = 3%. Find the real GDP growth rate and explain the three numbers
using apples as an example.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe9cffbc5-75b7-473b-86ac-46a3f7f0cd6f%2Ff3be2bd2-fca1-4e98-9d74-b8af9e762713%2Fpbbxdg8_processed.png&w=3840&q=75)
Transcribed Image Text:e) Let GDP (Gross Domestic Product) as a simplification, only be one good, apples. Find the
GDP deflator if nominal GDP = 100 and real GDP = 20 and explain these three numbers
using apples as an example.
f) As a follow up from part e), suppose the nominal GDP growth rate = 7% and the GDP
deflator inflation = 3%. Find the real GDP growth rate and explain the three numbers
using apples as an example.
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