Suppose that only two goods are produced in an economy. The rices and the quantity produced in 2020 and 2021 are given in ne following table: Price of Quantity of Price of cars Quantity of pizzas pizzas cars 2020 10£ 3,000,000 20,000,000£ 500 2021 10.1£ 3,500,000 21,000,000£ 550 Calculate the nominal and the real GDP of this economy in 2020 and 2021 using the Chained Volume Measure (CVM) method. b. Calculate the GDP deflator in the two years and the growth rate of the price level and real GDP in the country in 2021.

Suppose that only two goods are produced in an economy. The rices and the quantity produced in 2020 and 2021 are given in ne following table: Price of Quantity of Price of cars Quantity of pizzas pizzas cars 2020 10£ 3,000,000 20,000,000£ 500 2021 10.1£ 3,500,000 21,000,000£ 550 Calculate the nominal and the real GDP of this economy in 2020 and 2021 using the Chained Volume Measure (CVM) method. b. Calculate the GDP deflator in the two years and the growth rate of the price level and real GDP in the country in 2021.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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