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 = 2006) Year Quantity of Food Price of Food Quantity of Clothing Price of Clothing 2006 20 $15 15 $5 2007 60 $18 30 $6 Calculate: (1) nominal and real GDP in 2006 and 2007, (2) the GDP deflator (3) the growth rate in real output.
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 = 2006) Year Quantity of Food Price of Food Quantity of Clothing Price of Clothing 2006 20 $15 15 $5 2007 60 $18 30 $6 Calculate: (1) nominal and real GDP in 2006 and 2007, (2) the GDP deflator (3) the growth rate in real output.
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter23: Measuring A Nation's Income
Section: Chapter Questions
Problem 4PA
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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 = 2006)
Year | Quantity of Food | Quantity of Clothing | Price of Clothing | |
2006 | 20 | $15 | 15 | $5 |
2007 | 60 | $18 | 30 | $6 |
Calculate:
(1) nominal and real GDP in 2006 and 2007,
(2) the GDP deflator
(3) the growth rate in real output.
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