Consider an economy that produce only ice cream cones. In year 1, the quantity produce is 8 bars and the price is RM 2. In year 2, the quantity produced is 12 cones and the price is RM 3.50. In year 3, the quantity produced is 18 bars and the price is RM 4. Year 1 is the base year. Calculate the nominal GDP for each of these years. Calculate the real GDP for each of these years. Calculate the GDP deflator for each of these years. What is the percentage of growth rate of real GDP from year 2 to year 3?

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Answered: Consider an economy that produce only…

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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Consider an economy that produce only ice cream cones. In year 1, the quantity produce is 8 bars and the price is RM 2. In year 2, the quantity produced is 12 cones and the price is RM 3.50. In year 3, the quantity produced is 18 bars and the price is RM 4. Year 1 is the base year.

Calculate the nominal GDP for each of these years.
Calculate the real GDP for each of these years.
Calculate the GDP deflator for each of these years.
What is the percentage of growth rate of real GDP from year 2 to year 3?

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