explain how to get these answers In year 1 and year 2, there are two products produced in a given economy: computers and bread. Suppose that there are no intermediate goods. In year 1, 20 computers are produced and sold at $600 each,and in year 2, 25 computers are produced and sold at $1080 each. In year 1, 20,000 loaves of bread are sold for $1 each, and in year 2, 23,000 loaves of bread are sold for $1.40 each.a. Nominal GDP in year 1 is $ 32,000', and nominal GDP in year 2 is $ 59,200. (Round your responses to the nearest integer as needed.)b. Calculate real GDP in each year and the percentage increase in real GDP from year 1 to year 2 by using year 1 as the base year. Next, do the same calculations by using the chain-weighting method.Using year 1 as the base year, real GDP in year 1 is $ 32,000', real GDP in year 2 is $ 38,000', and the percentage increase in real GDP from year 1 to year 2 is 18.750°%. (Round responses for real GDP tothe nearest integer as needed, and round your response for the percentage increase to three decimal places as needed.)Using the chain-weighting method, real GDP (in year 1 dollars) in year 1 is $ 32,000 , real GDP in year 2 (in year 1 dollars) is $ 38,097, and the percentage increase in real GDP from year 1 to year 2 is19.052 %. (Round responses for real GDP to the nearest integer as needed, and round your response for the percentage increase to three decimal places as needed.)c. Calculate the implicit GDP price deflator and the percentage inflation rate from year 1 to year 2 by using year 1 as the base year. Next, do the same calculations by using the chain-weighting method.Using year 1 as the base year, the implicit GDP price deflator in year 1 is 100.00', and the implicit GDP price deflator in year 2 is 155.79. (Round your responses to two decimal places as needed.)Based on these results for the implicit GDP price deflator, the rate of inflation between years 1 and 2 is 55.79 %. (Round your response to two decimal places as needed.)Using the chain-weighting method, the implicit GDP price deflator (based on values in year 1 dollars) in year 1 is 100.00', and the implicit GDP price deflator (based on values in year 1 dollars) in year 2 is155.39. (Round your responses to two decimal places as needed.)Based on these results for the implicit GDP price deflator, the rate of inflation between years 1 and 2 is 55.39 %. (Round your response to two decimal places as needed.)d. Suppose that computers in year 2 are twice as productive as computers in year 1. How does this change your calculations in parts (a)-(c)? Explain any differences.A reasonable way to account for the fact that computers in year 2 are twice as productive as computers in year 1 in the calculations in parts (a)-(c) would be to define a "computer" as a "year 1 computer," whichwould entail not changing the year 1 quantity of computers, not changing the year 1 price of computers,doublingthe year 2 quantity of computers, andhalvingthe year 2 price of computers.If this method of accounting for the fact that computers in year 2 are twice as productive as computers in year 1 were applied, then compared to the results from part (a), nominal GDP in year 1 would bethe same and nominal GDP in year 2 would be the same.If this method of accounting for the productivity increase were applied, then compared to part (b), the percentage increase in real GDP from year 1 to year 2 using year 1 as the base year would behigherand the percentage increase in real GDP from year 1 to year 2 using the chain-weighting method would be higher.Compared to part (b), the signed difference in the percentage increase in real GDP fromyear 1 to year 2 between two calculations (year 1 base year minus chain-weighting) would be higher.If this method of accounting for the productivity increase were applied, then compared to part (b), the rate of inflation between years 1 and 2 based on the implicit GDP price deflator using year 1 as the base yearwould beV and the rate of inflation between years 1 and 2 based on the implicit GDP price deflator using the chain-weighting method would beV Compared to part (c), the signed differencein the rate of inflation from year 1 to year 2 between two calculations (year 1 base year minus chain-weighting) would be

Question

explain how to get these answers In year 1 and year 2, there are two products produced in a given economy: computers and bread. Suppose that there are no intermediate goods. In year 1, 20 computers are produced and sold at $600 each,and in year 2, 25 computers are produced and sold at $1080 each. In year 1, 20,000 loaves of bread are sold for $1 each, and in year 2, 23,000 loaves of bread are sold for $1.40 each.a. Nominal GDP in year 1 is $ 32,000', and nominal GDP in year 2 is $ 59,200. (Round your responses to the nearest integer as needed.)b. Calculate real GDP in each year and the percentage increase in real GDP from year 1 to year 2 by using year 1 as the base year. Next, do the same calculations by using the chain-weighting method.Using year 1 as the base year, real GDP in year 1 is $ 32,000', real GDP in year 2 is $ 38,000', and the percentage increase in real GDP from year 1 to year 2 is 18.750°%. (Round responses for real GDP tothe nearest integer as needed, and round your response for the percentage increase to three decimal places as needed.)Using the chain-weighting method, real GDP (in year 1 dollars) in year 1 is $ 32,000 , real GDP in year 2 (in year 1 dollars) is $ 38,097, and the percentage increase in real GDP from year 1 to year 2 is19.052 %. (Round responses for real GDP to the nearest integer as needed, and round your response for the percentage increase to three decimal places as needed.)c. Calculate the implicit GDP price deflator and the percentage inflation rate from year 1 to year 2 by using year 1 as the base year. Next, do the same calculations by using the chain-weighting method.Using year 1 as the base year, the implicit GDP price deflator in year 1 is 100.00', and the implicit GDP price deflator in year 2 is 155.79. (Round your responses to two decimal places as needed.)Based on these results for the implicit GDP price deflator, the rate of inflation between years 1 and 2 is 55.79 %. (Round your response to two decimal places as needed.)Using the chain-weighting method, the implicit GDP price deflator (based on values in year 1 dollars) in year 1 is 100.00', and the implicit GDP price deflator (based on values in year 1 dollars) in year 2 is155.39. (Round your responses to two decimal places as needed.)Based on these results for the implicit GDP price deflator, the rate of inflation between years 1 and 2 is 55.39 %. (Round your response to two decimal places as needed.)d. Suppose that computers in year 2 are twice as productive as computers in year 1. How does this change your calculations in parts (a)-(c)? Explain any differences.A reasonable way to account for the fact that computers in year 2 are twice as productive as computers in year 1 in the calculations in parts (a)-(c) would be to define a &#34;computer&#34; as a &#34;year 1 computer,&#34; whichwould entail not changing the year 1 quantity of computers, not changing the year 1 price of computers,doublingthe year 2 quantity of computers, andhalvingthe year 2 price of computers.If this method of accounting for the fact that computers in year 2 are twice as productive as computers in year 1 were applied, then compared to the results from part (a), nominal GDP in year 1 would bethe same and nominal GDP in year 2 would be the same.If this method of accounting for the productivity increase were applied, then compared to part (b), the percentage increase in real GDP from year 1 to year 2 using year 1 as the base year would behigherand the percentage increase in real GDP from year 1 to year 2 using the chain-weighting method would be higher.Compared to part (b), the signed difference in the percentage increase in real GDP fromyear 1 to year 2 between two calculations (year 1 base year minus chain-weighting) would be higher.If this method of accounting for the productivity increase were applied, then compared to part (b), the rate of inflation between years 1 and 2 based on the implicit GDP price deflator using year 1 as the base yearwould beV and the rate of inflation between years 1 and 2 based on the implicit GDP price deflator using the chain-weighting method would beV Compared to part (c), the signed differencein the rate of inflation from year 1 to year 2 between two calculations (year 1 base year minus chain-weighting) would be

Accepted Answer

“Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…