Question 2 (Activity 7.1) Suppose production and prices of food and clothing (the only two goods produced in this economy) in 2006 and 2007 are as follows: (base year = Year Quantity of Food Price of Food Quantity of Clothing Price of Clothing 2006 20 $15 15 $5 2007 60 $18 30 $6 Calculate: (i) nominal and real GDP in 2006 and 2007. (ii) the GDP deflator (iii) the growth rate in real output.

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A: Numerically, nominal GDP is the sum of the market value of goods and services produced in a given…

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A: 2013 2014 2015 Product Q P Q P Q P Sugar Cane 240 0.8 240 1 300 1.15 Yo-Yos 600 2.5 700 3…

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Q: Suppose production and prices of food and clothing (the only two goods produced in this economy) in…

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A: Nominal GDP: - it is the value of all final goods and services produced in any country in a given…

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A: Real GDP and Nominal GDP are two different ways of calculating Gross domestic product.

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A: Gross domestic production (GDP) refers to the all final goods and services the produced with in the…

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A:

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A: Nominal GDP =Q2015*P2015  =Q2016*P2016 =Q2017*P2017 Year 2015 ($1*4+$2*3)=$10 Year 2016…

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A: GDP is the production of goods and services during an accounting or financial year.

Q: GDP Deflator

A: GDP Deflator: GDP Deflator measures the prices of all final goods and services which produced…

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Q: 2015 2016 2017   P Q P Q P Q Onion 1,2 400 1,5 600 2,5 400 Tomato 1 320 2,5 200…

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