The table below is extracted from Happy land Republic, Bureau of Statistics records for 2018-2019. Use the information in this table to answer the questions that follow. i. Calculate Happy Land Republic’s nominal GDP and real GDP in 2016 ii. Why does real GDP always defer from nominal GDP?
The table below is extracted from Happy land Republic, Bureau of Statistics records for 2018-2019. Use the information in this table to answer the questions that follow. i. Calculate Happy Land Republic’s nominal GDP and real GDP in 2016 ii. Why does real GDP always defer from nominal GDP?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The table below is extracted from Happy land Republic, Bureau of Statistics records
for 2018-2019. Use the information in this table to answer the questions that follow.
i. Calculate Happy Land Republic’s nominal
ii. Why does real GDP always defer from nominal GDP?
Item Base year (2015) 2016
Production
Used car sales 5,000 2000.00 6,000 2,500
Factory components sales 8,000 500.00 10,000 1200.00
Cloth sales 8,000 20.00 14,000 35.00
Beef sales 1,500 10.00 1,800 12.00
Milk litres sales 5,000 1.30 6,000 2.50
Computers sales 2000 500.00 2500 800.00
Printers sales 500 300.00 400 355.00
Raw materials for tractor
assembling plant sales 4500 250.00 4450 300.00
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