The table below is extracted from Goodland Republic Bureau of Statistics records for 2016 -2017. Use the information to answer the questions that follow. Goodland Economy 2017 and 2018 Item Price 2017 Price 2018 Production Price per unit Production Price per unit Rice (000tons) 50000 1.5 55000 2 Wheat (000 tons) 100000 2 98000 2.5 Tractor mid size( units ) 50000 23000 45000 24500 Cotton (000 tons) 120000 100 110000 120 Used Cars (00) 5000 5000 6000 7000 Manufacture Garments (000 tons) 150000 50 145000 70 Eggs (000 trays) 2000 2.5 2300 3.5 Coca cola (000litres) 6000 0.8 6500 1.2 Pepsi cola (000 litres) 700 1.1 850 1.5 Beef (000 tons) 5000 6.5 4800 8.5 Second hand clothes (000 tons) 500 15 450 25 Alcoholic Beverages (000 litres) 500 3.25 600 3.75 Milk (000) 7000 2.3 7500 2.5 Examine the status of the economic welfare in Goodland Republic in 2018 based on your GDP deflator, nominal GDP and Real GDP. Also, explain the reasons why it is necessary to calculate real GDP. Show your work.
The table below is extracted from Goodland Republic Bureau of Statistics records for 2016 -2017. Use the information to answer the questions that follow. Goodland Economy 2017 and 2018 Item Price 2017 Price 2018 Production Price per unit Production Price per unit Rice (000tons) 50000 1.5 55000 2 Wheat (000 tons) 100000 2 98000 2.5 Tractor mid size( units ) 50000 23000 45000 24500 Cotton (000 tons) 120000 100 110000 120 Used Cars (00) 5000 5000 6000 7000 Manufacture Garments (000 tons) 150000 50 145000 70 Eggs (000 trays) 2000 2.5 2300 3.5 Coca cola (000litres) 6000 0.8 6500 1.2 Pepsi cola (000 litres) 700 1.1 850 1.5 Beef (000 tons) 5000 6.5 4800 8.5 Second hand clothes (000 tons) 500 15 450 25 Alcoholic Beverages (000 litres) 500 3.25 600 3.75 Milk (000) 7000 2.3 7500 2.5 Examine the status of the economic welfare in Goodland Republic in 2018 based on your GDP deflator, nominal GDP and Real GDP. Also, explain the reasons why it is necessary to calculate real GDP. Show your work.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The table below is extracted from Goodland Republic Bureau of Statistics records for 2016 -2017. Use the information to answer the questions that follow.
Goodland Economy 2017 and 2018
| Item | Price 2018 | |||
| Production | Price per unit | Production | Price per unit | |
| Rice (000tons) | 50000 | 1.5 | 55000 | 2 |
| Wheat (000 tons) | 100000 | 2 | 98000 | 2.5 |
| Tractor mid size( units ) | 50000 | 23000 | 45000 | 24500 |
| Cotton (000 tons) | 120000 | 100 | 110000 | 120 |
| Used Cars (00) | 5000 | 5000 | 6000 | 7000 |
| Manufacture Garments (000 tons) | 150000 | 50 | 145000 | 70 |
| Eggs (000 trays) | 2000 | 2.5 | 2300 | 3.5 |
| Coca cola (000litres) | 6000 | 0.8 | 6500 | 1.2 |
| Pepsi cola (000 litres) | 700 | 1.1 | 850 | 1.5 |
| Beef (000 tons) | 5000 | 6.5 | 4800 | 8.5 |
| Second hand clothes (000 tons) | 500 | 15 | 450 | 25 |
| Alcoholic Beverages (000 litres) | 500 | 3.25 | 600 | 3.75 |
| Milk (000) | 7000 | 2.3 | 7500 | 2.5 |
Examine the status of the economic welfare in Goodland Republic in 2018 based on your GDP deflator, nominal GDP and Real GDP. Also, explain the reasons why it is necessary to calculate real GDP. Show your work.
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