The economy of Tuland produces only two products fish and watches. The following information is available for production and prices of Tuland's products for the years 2009 and 2010. 2009 2010 Quantity of fish Quantity of watches 120 126 60 75 Price of fish $10.00 $11.50 Price of watches $30.00 $33.00 Using the above information, calculate the following values. (Enter your responses rounded to two decimal places.) GDP for 2009 in 2009's prices GDP for 2009 in 2010's prices GDP for 2010 in 2009's prices GDP for 2010 in 2010's prices Using 2009 as the base year, compute the percentage change in the price level, i.e. the inflation rate. hint: you need to compute the GDP deflator first. Using 2010 as the base year, compute the percentage change in the price level, i.e. the inflation rate. hint: you need to compute the GDP deflator first. The geometric average of the two inflation rates
The economy of Tuland produces only two products fish and watches. The following information is available for production and prices of Tuland's products for the years 2009 and 2010. 2009 2010 Quantity of fish Quantity of watches 120 126 60 75 Price of fish $10.00 $11.50 Price of watches $30.00 $33.00 Using the above information, calculate the following values. (Enter your responses rounded to two decimal places.) GDP for 2009 in 2009's prices GDP for 2009 in 2010's prices GDP for 2010 in 2009's prices GDP for 2010 in 2010's prices Using 2009 as the base year, compute the percentage change in the price level, i.e. the inflation rate. hint: you need to compute the GDP deflator first. Using 2010 as the base year, compute the percentage change in the price level, i.e. the inflation rate. hint: you need to compute the GDP deflator first. The geometric average of the two inflation rates
Chapter6: Tracking The U.s. Economy
Section: Chapter Questions
Problem 4.8P
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Transcribed Image Text:The economy of Tuland produces only two products fish and watches. The following information is available for production and prices of Tuland's products for the years 2009 and 2010.
2009
2010
Quantity of fish
Quantity of watches
Price of fish
120
126
60
75
$10.00
$30.00
Using the above information, calculate the following values. (Enter your responses rounded to two decimal places.)
$11,50
Price of watches
$33.00
GDP for 2009 in 2009's prices
GDP for 2009 in 2010's prices
GDP for 2010 in 2009's prices
$4
GDP for 2010 in 2010's prices
2$
Using 2009 as the base year, compute the percentage change in the price level, i.e. the inflation rate. hint: you need to compute the
GDP deflator first.
Using 2010 as the base year, compute the percentage change
GDP deflator first.
the price level, i.e. the inflation rate. hint: you need to compute the
%
The geometric average of the two inflation rates
%
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