ve data for two different years.The first 2 questions refer to this table. Price of 1 Automobile Price of 1 loaf of Bread Price of 1 cup of Coffee Number of Automobiles Produced Number of Loaves of Bread Produced Number of Cups of Coffee Produced Year 2018 Year 2019 $31.000 $1.60 $2.20 1100 400,000 105,000 $30,000 $1.50 $2.00 1000 400,000 100,000 Using the year 2018 as the base year, compute the following statistics for each year: nominal GDP, real GDP, the GDP deflator (a Paasche price index) and the CPI (a Laspeyres price index). For the CPI, assume that the representative basket of goods is exactly the one produced in the year 2018

ve data for two different years.The first 2 questions refer to this table. Price of 1 Automobile Price of 1 loaf of Bread Price of 1 cup of Coffee Number of Automobiles Produced Number of Loaves of Bread Produced Number of Cups of Coffee Produced Year 2018 Year 2019 $31.000 $1.60 $2.20 1100 400,000 105,000 $30,000 $1.50 $2.00 1000 400,000 100,000 Using the year 2018 as the base year, compute the following statistics for each year: nominal GDP, real GDP, the GDP deflator (a Paasche price index) and the CPI (a Laspeyres price index). For the CPI, assume that the representative basket of goods is exactly the one produced in the year 2018

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider an economy that produces and consumes coffee, bread and auto-
mobiles. In the following table, we have data for two different years. The
first 2 questions refer to this table.
Year 2018 Year 2019
$31,000
$30,000
$1.60
$1.50
$2.00
Price of 1 Automobile
Price of 1 loaf of Bread
Price of 1 cup of Coffee
Number of Automobiles Produced
Number of Loaves of Bread Produced
Number of Cups of Coffee Produced
$2.20
1100
1000
400,000
100,000
400,000
105.000
Using the year 2018 as the base year, compute the
following statistics for each year: nominal GDP, real GDP, the GDP
deflator (a Paasche price index) and the CPI (a Laspeyres price index).
For the CPI, assume that the representative basket of goods is exactly
the one produced in the year 2018

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