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

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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

 

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