Table 1 shows some data on the prices and quantities for a simple economythat produces the following goods and services.Table 1: Price and quantity for three types of productProductYear 2017Year 2018Year 2019PriceQuantityPriceQuantityPriceQuantity(RM)(RM)(RM)A118012001.25200907590100100120C0.66750.56000.5630(i)Compute the values of nominal GDP in 2017, 2018 and 2019.Compute the values of real GDP and GDP deflator in 2018 and 2019(using 2017 as the base year).(ii)Compute the percentage change in the real GDP in 2018 and 2019from the preceding year.(iii)

Nominal GDP measures the value of goods and services at current prices whereas real GDP measures it…

Table 1: Price and quantity for three types of product Product Year 2017 Year 2018 Year 2019 Price Quantity Price Quantity Price Quantity (RM) (RM) (RM) А 1 180 1 200 1.25 200 B 90 75 90 100 100 120 0.6 675 0.5 600 0.5 630 (i) Compute the values of nominal GDP in 2017, 2018 and 2019. Compute the values of real GDP and GDP deflator in 2018 and 2019 (using 2017 as the base year). (ii) Compute the percentage change in the real GDP in 2018 and 2019 from the preceding year. (iii)

Table 1: Price and quantity for three types of product Product Year 2017 Year 2018 Year 2019 Price Quantity Price Quantity Price Quantity (RM) (RM) (RM) А 1 180 1 200 1.25 200 B 90 75 90 100 100 120 0.6 675 0.5 600 0.5 630 (i) Compute the values of nominal GDP in 2017, 2018 and 2019. Compute the values of real GDP and GDP deflator in 2018 and 2019 (using 2017 as the base year). (ii) Compute the percentage change in the real GDP in 2018 and 2019 from the preceding year. (iii)

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Tracking The U.s. Economy

Section: Chapter Questions

Problem 4.8P

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