The table below is extracted from Goodland Republic Bureau of Statistics records for 2016 -2017. Use the information to answer the questions that follow. Goodland Economy 2017 and 2018 ItemPrice 2017Price 2018 ProductionPrice per unitProductionPrice per unitRice (000tons)500001.5550002Wheat (000 tons)1000002980002.5Tractor mid size( units )50000230004500024500Cotton (000 tons)120000100110000120Used Cars (00)5000500060007000Manufacture Garments (000 tons)1500005014500070Eggs (000 trays)20002.523003.5Coca cola (000litres)60000.865001.2Pepsi cola (000 litres)7001.18501.5Beef (000 tons)50006.548008.5Second hand clothes (000 tons)5001545025Alcoholic Beverages (000 litres)5003.256003.75Milk (000)70002.375002.5 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.

Calculation of Nominal GDP : It is calculated on the basis of current prices. In the GDP only final…

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ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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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.

Goodland Economy 2017 and 2018

Item	Price 2017	Price 2018
	Production	Price per unit	Production	Price per unit
Rice (000tons)	50000	1.5	55000	2
Wheat (000 tons)	100000	2	98000	2.5
Tractor mid size( units )	50000	23000	45000	24500
Cotton (000 tons)	120000	100	110000	120
Used Cars (00)	5000	5000	6000	7000
Manufacture Garments (000 tons)	150000	50	145000	70
Eggs (000 trays)	2000	2.5	2300	3.5
Coca cola (000litres)	6000	0.8	6500	1.2
Pepsi cola (000 litres)	700	1.1	850	1.5
Beef (000 tons)	5000	6.5	4800	8.5
Second hand clothes (000 tons)	500	15	450	25
Alcoholic Beverages (000 litres)	500	3.25	600	3.75
Milk (000)	7000	2.3	7500	2.5

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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