An imaginary economy produces five (5) types of goods as follows: Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 A 200 220 240 280 300 320 350 400 500 B 180 200 250 300 350 380 400 450 500 C 100 130 180 220 280 300 400 450 500 D 120 150 200 250 300 350 400 500 600 E 50 70 80 90 100 120 130 150 200 Price A 100 120 140 140 150 180 200 300 350 Price B 200 250 300 350 380 450 500 400 500 Price of C 50 60 80 90 110 150 200 300 400 Price of D 20 25 30 40 60  80 100 200 300 Price of E 40 60 80 100 120 140 160 200 350 Calculate nominal GDP. Calculate real GDP using 2017 as the base year. Compute the average growth rate in real GDP from 2013 to 2020 and comment on your result.

MACROECONOMICS FOR TODAY
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Chapter5: Gross Domestic Product
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An imaginary economy produces five (5) types of goods as follows:

Year

2013

2014

2015

2016

2017

2018

2019

2020

2021

A

200

220

240

280

300

320

350

400

500

B

180

200

250

300

350

380

400

450

500

C

100

130

180

220

280

300

400

450

500

D

120

150

200

250

300

350

400

500

600

E

50

70

80

90

100

120

130

150

200

Price A

100

120

140

140

150

180

200

300

350

Price B

200

250

300

350

380

450

500

400

500

Price of C

50

60

80

90

110

150

200

300

400

Price of D

20

25

30

40

60

 80

100

200

300

Price of E

40

60

80

100

120

140

160

200

350

  1. Calculate nominal GDP.
  2. Calculate real GDP using 2017 as the base year.
  3. Compute the average growth rate in real GDP from 2013 to 2020 and comment on your result.
  4. Compute inflation for 2020 using the GDP deflator with year 2016 as the base year.
  5. How does the inflation rate change in (d) above if the base year is shifted to 2012? Comment on your answer.
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