Q6The country of Caspir produces only cereal and milk. Quantities and prices of thesegoods for the last several years are shown below. The base year is 2008.Prices and QuantitiesYear2008200920102011Price of Cereal Quantity of Price of MilkCereal$4.00$4.00Refer to Table 10-4. In 2008, this country's$6.00a.d.90120150$1.50$2.00$2.50$3.50b. nominal GDP was equal to real GDP and the GDP deflator was equal to 1nominal GDP was less than real GDP, and the GDP deflator was less than 1004. nomunal GDP was equal to real GDP, and the GDP deflator was equal to 100Q7. Refer to Table 10-4. In 2009, this country'sreal GDP was $660, and the GDP deflator was 113.4b. real GDP was S670, and the GDP deflator was 115.2real GDP was $660, and the GDP deflator was 115.2.real GDP was $670, and the GDP deflator was 113.4.Quantity ofMilk150a nominal GDP was greater than real GDP and the GDP deflator was greater than100.180200200

Nominal GDP measures the market value of final goods and services at current year prices. Real GDP…

26The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2008. Prices and Quantities Year 2008 2009 Price of Cereal Quantity of Cereal $4.00 $4.00 90 100 Price of Milk $1.50 $2.00 Quantity of Milk 150 190

26The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2008. Prices and Quantities Year 2008 2009 Price of Cereal Quantity of Cereal $4.00 $4.00 90 100 Price of Milk $1.50 $2.00 Quantity of Milk 150 190

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 18P

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