a. The overall price level increased 50% from the year 2018 to 2019 in the country, and the price index is 100 in 2018, what is the value of price index in 2019?  3. b. Calculate the nominal and real GDP in 2018 and 2019 by taking 2018 as base year. 3 c. Take 2019 as base year instead of 2018 and calculate the real GDP for 2018. Is the real GDP of the 2018 changes? Why? Country Name Year Exports  Consumption   Investment  Net Exports Government Expenditure Imports Cambodia 2018 61.315 75.209 23.341 -1.699 4.904 63.014 Cambodia 2019 67.209 81.655 26.660 -1.512 5.288 68.721

Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter23: Measuring A Nation's Income
Section: Chapter Questions
Problem 4PA
icon
Related questions
Question

a. The overall price level increased 50% from the year 2018 to 2019 in the country, and the price index is 100 in 2018, what is the value of price index in 2019? 
3. b. Calculate the nominal and real GDP in 2018 and 2019 by taking 2018 as base year.
3 c. Take 2019 as base year instead of 2018 and calculate the real GDP for 2018. Is the real GDP of the 2018 changes? Why?

Country Name Year Exports  Consumption   Investment  Net Exports Government Expenditure Imports
Cambodia 2018 61.315 75.209 23.341 -1.699 4.904 63.014
Cambodia 2019 67.209 81.655 26.660 -1.512 5.288 68.721
Expert Solution
steps

Step by step

Solved in 5 steps with 10 images

Blurred answer
Knowledge Booster
Gross Domestic Product
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Principles of Economics, 7th Edition (MindTap Cou…
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours…
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Macroeconomics: Private and Public Choice (MindTa…
Macroeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506756
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning