Suppose the following table records the total output and prices for an entire economy. The base year in the following table is 2020. Quantity of Quantity of Year Price of Apples Price of Haircuts Apples Haircuts 2020 $5.00 40 $20.00 70 2021 $6.00 50 $22.00 60 a) What was the value of nominal GDP in 2020 and 2021? b) What was the value of real GDP in 2020 and 2021? c) What was the value of the GDP deflator in 2020 and 2021? d) From 2020 to 2021, what was the economy's real economic growth? e) From 2020 to 2021, what was the inflation rate?

Suppose the following table records the total output and prices for an entire economy. The base year in the following table is 2020. Quantity of Quantity of Year Price of Apples Price of Haircuts Apples Haircuts 2020 $5.00 40 $20.00 70 2021 $6.00 50 $22.00 60 a) What was the value of nominal GDP in 2020 and 2021? b) What was the value of real GDP in 2020 and 2021? c) What was the value of the GDP deflator in 2020 and 2021? d) From 2020 to 2021, what was the economy's real economic growth? e) From 2020 to 2021, what was the inflation rate?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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