The following table shows production and prices in 2019 and 2020. Use 2019 as the base year for any relevant calculations. Year Good Price per unit Production (units) 2019 Guns $1,000 10,000 2019 Butter $100 5,000 2020 Guns $500 20,000 2020 Butter $200 5,000 12. What is the GDP deflator in 2020? (A) 537. (B) 186. (C) 18.6. (D) 53.7.
The following table shows production and prices in 2019 and 2020. Use 2019 as the base year for any relevant calculations. Year Good Price per unit Production (units) 2019 Guns $1,000 10,000 2019 Butter $100 5,000 2020 Guns $500 20,000 2020 Butter $200 5,000 12. What is the GDP deflator in 2020? (A) 537. (B) 186. (C) 18.6. (D) 53.7.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
The following table shows production and prices in 2019 and 2020. Use 2019
as the base year for any relevant calculations.
Year Good
2019 Guns $1,000 10,000
2019 Butter $100 5,000
2020 Guns $500 20,000
2020 Butter $200 5,000
12. What is the GDP deflator in 2020?
(A) 537.
(B) 186.
(C) 18.6.
(D) 53.7.
Expert Solution
Basic concept
# During a fiscal year, GDP deflator calculates the effect of Inflation during that year on the prevailing level of GDP. The formula for GDP deflator is given as:-
GDP deflator = { Nominal GDP / Real GDP } * 100
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