Assume a hypothetical economy that produces only one good – Peanut Butter. In year 1, the quantity produced is 4 packs and the price is Rs.400 per pack. In year 2, the quantity produced is 5 packs and the price is Rs.500 per pack. In year 3, the quantity produced is 6 packs and the price is Rs.600 per pack. Year 1 is the base year. What is nominal GDP for each of these three years? What is real GDP for each of these years? What is the GDP deflator for each of these years? What is the percentage growth rate of real GDP from year 2 to year 3? What is the inflation rate as measured by the GDP deflator from year 2 to year 3? In this one-good economy, how might you have answered parts (d) and (e) without first answering parts (b) and (c)?
Assume a hypothetical economy that produces only one good – Peanut Butter. In year 1, the quantity produced is 4 packs and the price is Rs.400 per pack. In year 2, the quantity produced is 5 packs and the price is Rs.500 per pack. In year 3, the quantity produced is 6 packs and the price is Rs.600 per pack. Year 1 is the base year. What is nominal GDP for each of these three years? What is real GDP for each of these years? What is the GDP deflator for each of these years? What is the percentage growth rate of real GDP from year 2 to year 3? What is the inflation rate as measured by the GDP deflator from year 2 to year 3? In this one-good economy, how might you have answered parts (d) and (e) without first answering parts (b) and (c)?
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Measuring A Nation's Income
Section: Chapter Questions
Problem 6PA
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- Assume a hypothetical economy that produces only one good – Peanut Butter. In year 1, the quantity produced is 4 packs and the
price is Rs.400 per pack. In year 2, the quantity produced is 5 packs and the price is Rs.500 per pack. In year 3, the quantity produced is 6 packs and the price is Rs.600 per pack. Year 1 is the base year.- What is nominal
GDP for each of these three years? - What is real GDP for each of these years?
- What is the GDP deflator for each of these years?
- What is the percentage growth rate of real GDP from year 2 to year 3?
- What is the inflation rate as measured by the GDP deflator from year 2 to year 3?
- In this one-good economy, how might you have answered parts (d) and (e) without first answering parts (b) and (c)?
- What is nominal
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