The table below is extracted from Happyland Republic, Bureau of Statistics records for 2019-2020. Use the information in this table to answer the questions that follow. Items Base year 2019 2020     Production Price Production Price Used cloth (units) 4,000 50.00 5,000 60.00 Components used tractor factory production (units) 8,000 500.00 11,000 1,200.00 Cloth (units) 8,000 25.00 12,000 30.00 Beef gifts during cultural festival (Kg) 1,500 2.00 1,700 3.00 Milk (litres) 5,000 1.30 7,000 2.50 Computers (Units) 2,000 500.00 2,500 600.00 Printers (Units) 500 300.00 400 355.00 Raw materials for car assembling plant (Units) 4,500 250.00 4,450 300.00 1.Calculate Happyland Republic’s nominal GDP, real GDP in 2020. Also, calculate the GDP deflator if 2019 is used as the base year.   2.Double counting must be avoided when measuring GDP. State and examine four (4) transactions that are excluded from GDP to avoid overstating the size of the economy of a nation.

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The table below is extracted from Happyland Republic, Bureau of Statistics records for 2019-2020. Use the information in this table to answer the questions that follow.

Items

Base year 2019

2020

 

 

Production

Price

Production

Price

Used cloth (units)

4,000

50.00

5,000

60.00

Components used tractor factory production (units)

8,000

500.00

11,000

1,200.00

Cloth (units)

8,000

25.00

12,000

30.00

Beef gifts during cultural festival (Kg)

1,500

2.00

1,700

3.00

Milk (litres)

5,000

1.30

7,000

2.50

Computers (Units)

2,000

500.00

2,500

600.00

Printers (Units)

500

300.00

400

355.00

Raw materials for car assembling plant (Units)

4,500

250.00

4,450

300.00

1.Calculate Happyland Republic’s nominal GDP, real GDP in 2020. Also, calculate the GDP deflator if 2019 is used as the base year.  

2.Double counting must be avoided when measuring GDP. State and examine four (4) transactions that are excluded from GDP to avoid overstating the size of the economy of a nation.                       

Expert Solution
Step 1

Gross domestic product (GDP) is the total monetary all the finished goods and services produced within a country’s borders in a specific time period. 

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