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.

Question

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.

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