The table below is extracted from Goodland Republic Bureau of Statistics records for 2016 -2017. Use the information to answer the questions that follow. Examine the status of the economic welfare in Goodland Republic in 2018 based on your GDP deflator, nominal GDP and Real GDP. Also, explain the reasons why it is necessary to calculate real GDP. Show your work. Price 2017 (base year) Price 2018 Item Production Price per unit($) Production Price per unit($) Rice 50,000 1.50 55,000 2.00 Wheat 100,000 2.00 98,000 2.50 Tractors mid-size 50,000 23,000.00 45,000 24,500.00 Cotton 120,000 100.00 110,000 120.00 Used cars 5,000 5,000.00 6,000 7,000.00 Manufacture garments 150,000 50.00 145,000 70.00 Eggs 2,000 2.50 2,300 3.50 Coca Cola 6,000 0.80 6,500 1.20 Pepsi Cola 700 1.10 850 1.50 Beef 5,000 6.50 4,800 8.50 Second-hand clothes 500 15.00 450 25.00 Alcoholic beverages 500 3.25 600 3.75 milk 7,000 2.30 7,500 2.50
The table below is extracted from Goodland Republic Bureau of Statistics records for 2016 -2017. Use the information to answer the questions that follow.
Examine the status of the economic welfare in Goodland Republic in 2018 based on your GDP deflator, nominal GDP and Real GDP. Also, explain the reasons why it is necessary to calculate real GDP. Show your work.
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Price 2018 |
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Item |
Production |
Price per unit($) |
Production |
Price per unit($) |
|
Rice |
50,000 |
1.50 |
55,000 |
2.00 |
|
Wheat |
100,000 |
2.00 |
98,000 |
2.50 |
|
Tractors mid-size |
50,000 |
23,000.00 |
45,000 |
24,500.00 |
|
Cotton |
120,000 |
100.00 |
110,000 |
120.00 |
|
Used cars |
5,000 |
5,000.00 |
6,000 |
7,000.00 |
|
Manufacture garments |
150,000 |
50.00 |
145,000 |
70.00 |
|
Eggs |
2,000 |
2.50 |
2,300 |
3.50 |
|
Coca Cola |
6,000 |
0.80 |
6,500 |
1.20 |
|
Pepsi Cola |
700 |
1.10 |
850 |
1.50 |
|
Beef |
5,000 |
6.50 |
4,800 |
8.50 |
|
Second-hand clothes |
500 |
15.00 |
450 |
25.00 |
|
Alcoholic beverages |
500 |
3.25 |
600 |
3.75 |
|
milk |
7,000 |
2.30 |
7,500 |
2.50 |
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