using the table below giving the quantity and price of goods produced in an economy in two periods in suitable units, assuming that there are only three goods produced in the economy. Consider the economy described above a) What is nominal GDP in 2003 and in 2004? By what percentage does nominal GDP change from 2003 to 2004? b) Using the prices for 2003 as the set of common prices, what is real GDP in 2003 and in 2004? By what percentage does real GDP change from 2003 to 2004? c) Using the prices for 2004 as the set of common prices, what is real GDP in 2003 and in 2004? By what percentage does real GDP change from 2003 to 2004?
using the table below giving the quantity and price of goods produced
in an economy in two periods in suitable units, assuming that there are only three goods
produced in the economy.
Consider the economy described above
a) What is nominal
GDP change from 2003 to 2004?
b) Using the prices for 2003 as the set of common prices, what is real GDP in 2003
and in 2004? By what percentage does real GDP change from 2003 to 2004?
c) Using the prices for 2004 as the set of common prices, what is real GDP in 2003
and in 2004? By what percentage does real GDP change from 2003 to 2004?
d) Why are the two output growth rates constructed in (b) and (c) different? Which
one is correct? Explain your answer.
Step by step
Solved in 4 steps with 9 images
