i. Calculate Happyland Republic's nominal GDP, real GDP in 2020. Also, calculate the GDP deflator if 2019 is used as the base year. Show your work.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter5: Business And Economic Forecasting
Section: Chapter Questions
Problem 1.1CE
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The table below is extracted from Happyland Republic, Bureau of Statistics records for 2019-
2020. Use the information in this table to answer the questions that follow.
Base year 2019
Productio
Items
2020
Productio
Price
Price
n
n
Used cloth (units)
4,000
50.00
5,000
60.00
Components used tractor factory production
(units)
Cloth (units)
1,200.0
8,000 500.00
11,000
8,000
25.00
12,000
30.00
Beef gifts during cultural festival (Kg)
Milk (litres)
Computers (Units)
Printers (Units)
Raw materials for car assembling plant (Units)
1,500
2.00
1,700
3.00
5,000
2,000 500.00
500 300.00
4,500 250.00
1.30
7,000
2.50
2,500
600.00
400
355.00
4,450
300.00
i.
Calculate Happyland Republic's nominal GDP, real GDP in 2020. Also,
calculate the GDP deflator if 2019 is used as the base year.
Show your work.
Transcribed Image Text:The table below is extracted from Happyland Republic, Bureau of Statistics records for 2019- 2020. Use the information in this table to answer the questions that follow. Base year 2019 Productio Items 2020 Productio Price Price n n Used cloth (units) 4,000 50.00 5,000 60.00 Components used tractor factory production (units) Cloth (units) 1,200.0 8,000 500.00 11,000 8,000 25.00 12,000 30.00 Beef gifts during cultural festival (Kg) Milk (litres) Computers (Units) Printers (Units) Raw materials for car assembling plant (Units) 1,500 2.00 1,700 3.00 5,000 2,000 500.00 500 300.00 4,500 250.00 1.30 7,000 2.50 2,500 600.00 400 355.00 4,450 300.00 i. Calculate Happyland Republic's nominal GDP, real GDP in 2020. Also, calculate the GDP deflator if 2019 is used as the base year. Show your work.
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