Suppose that only two goods are produced in an economy. The rices and the quantity produced in 2020 and 2021 are given in ne following table: Price of Quantity of Price of cars Quantity of pizzas pizzas cars 2020 10£ 3,000,000 20,000,000£ 500 2021 10.1£ 3,500,000 21,000,000£ 550 Calculate the nominal and the real GDP of this economy in 2020 and 2021 using the Chained Volume Measure (CVM) method. b. Calculate the GDP deflator in the two years and the growth rate of the price level and real GDP in the country in 2021.

Suppose that only two goods are produced in an economy. The rices and the quantity produced in 2020 and 2021 are given in ne following table: Price of Quantity of Price of cars Quantity of pizzas pizzas cars 2020 10£ 3,000,000 20,000,000£ 500 2021 10.1£ 3,500,000 21,000,000£ 550 Calculate the nominal and the real GDP of this economy in 2020 and 2021 using the Chained Volume Measure (CVM) method. b. Calculate the GDP deflator in the two years and the growth rate of the price level and real GDP in the country in 2021.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter15: Gross Domestic Product

Section: Chapter Questions

Problem 7SQP

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