The economy of Fantasia produces only 2 goods namely Shoes and Computers. The total productionand average prices of shoes and computers are displayed in Table attached.Calculate the GDP deflator for 2020 Products AveragePrice in2019Shoes 110Computers 99AveragePrice in2020121148Totalproductionin 2019(units)35002000Totalproductionin 2020(units)37003000

The gross domestic product implicit price deflator, often known as the GDP deflator, is a metric…

The economy of Fantasia produces only 2 goods namely Shoes and Computers. The total production and average prices of shoes and computers are displayed in Table attached. Calculate the GDP deflator for 2020

The economy of Fantasia produces only 2 goods namely Shoes and Computers. The total production and average prices of shoes and computers are displayed in Table attached. Calculate the GDP deflator for 2020

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The economy of Fantasia produces only 2 goods namely Shoes and Computers. The total production
and average prices of shoes and computers are displayed in Table attached.

Calculate the GDP deflator for 2020

Products Average
Price in
2019
Shoes 110
Computers 99
Average
Price in
2020
121
148
Total
production
in 2019
(units)
3500
2000
Total
production
in 2020
(units)
3700
3000

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