Consider the fóllowing data. Assuming these are the only products produced and consumed in the economy:Product2020 Quantity2020 Price ($)2021 Quantity2021 Price ($)Beer14181613Chocolate15111712Using 2021 as the base year answer the following questions:a.What was the nominal GDP in 2020 and 2021?b.What was the real GDP in 2020 and 2021?C.What was the GDP deflator in 2020 and 2021?d.What was the growth rate of nominal GDP between 2020 and 2021? What was the growth rate of real GDP between 2020 and 2021? What was the growth rate of the GDP deflatorbetween 2020 and 2021?e.Calculate the value of the basket in 2020 and 2021. (Hint: treat 2021 quantities as the basket for the CPI)f.Calculate the CPI for 2020 and 2021.g.Calculate the annual inflation rate over the 2020-2021 period.

Note: There are multiple subparts in the question. We shall solve the first three sub parts at a…

Product 2020 Quantity 2020 Price ($) 2021 Quantity 2021 Price ($) Beer 14 18 16 13 Chocolate 15 11 17 12 sing 2021 as the base year answer the following questions: What was the nominal GDP in 2020 and 2021? What was the real GDP in 2020 and 2021? What was the GDP deflator in 2020 and 2021? What was the growth rate of nominal GDP between 2020 and 2021? What was the growth rate of real GDP between 2020 and 2021? What was the growth rate of the GDP deflator etween 2020 and 2021? Calculate the value of the basket in 2020 and 2021. (Hint: treat 2021 quantities as the basket for the CPI) Calculate the CPI for 2020 and 2021. Calculate the annual inflation rate over the 2020-2021 period.

Product 2020 Quantity 2020 Price ($) 2021 Quantity 2021 Price ($) Beer 14 18 16 13 Chocolate 15 11 17 12 sing 2021 as the base year answer the following questions: What was the nominal GDP in 2020 and 2021? What was the real GDP in 2020 and 2021? What was the GDP deflator in 2020 and 2021? What was the growth rate of nominal GDP between 2020 and 2021? What was the growth rate of real GDP between 2020 and 2021? What was the growth rate of the GDP deflator etween 2020 and 2021? Calculate the value of the basket in 2020 and 2021. (Hint: treat 2021 quantities as the basket for the CPI) Calculate the CPI for 2020 and 2021. Calculate the annual inflation rate over the 2020-2021 period.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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