An economy produces three goods: organ, apple and organ juice. It is assumed that half of the organ are bought and consumed as final good; the other half is used to produce organ juice. In 2019, 20 KGs of organ are produced at Rs.50/kg, 40 KGs of apple are produced at 100/kg, and 25 Glasses of organ juice are produced at Rs.200/glass. In 2020, 40 KGs of organ are produced at Rs.80/kg, 60 KGs of apple are produced at 110/kg, and 30 glasses of organ juice are produced at Rs.195/glass. Find the following: Assuming 2019 is the base year; calculate the real and nominal GDP in 2019 and 2020.

An economy produces three goods: organ, apple and organ juice. It is assumed that half of the organ are bought and consumed as final good; the other half is used to produce organ juice. In 2019, 20 KGs of organ are produced at Rs.50/kg, 40 KGs of apple are produced at 100/kg, and 25 Glasses of organ juice are produced at Rs.200/glass. In 2020, 40 KGs of organ are produced at Rs.80/kg, 60 KGs of apple are produced at 110/kg, and 30 glasses of organ juice are produced at Rs.195/glass. Find the following: Assuming 2019 is the base year; calculate the real and nominal GDP in 2019 and 2020.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter11: Gross Domestic Product

Section: Chapter Questions

Problem 3SQP

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An economy produces two goods: tomatoes and ketchup. It is assumed that half of the tomatoes are bought and consumed as final good; the other half is used to produce ketchup. In 2014, 30 KGs of tomatoes are produced at Rs.60 each, and 20 KGs of ketchup are produced at Rs.200 each.In 2015, 40 KGs of tomatoes are produced at Rs.80 each, and 30 KGs of ketchup are produced at Rs.195 each. Find the following: i. Assuming 2014 is the base year; calculate the real, nominal GDP and GDP deflator in 2014 and 2015.
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