Explanation Table-1 shows the nominal GDP, real GDP, and percentage change in 2020–2021 as follows: Table-1 2020 2021 Percent change 2020–2021 Quantity of oranges 100 105 5 Quantity of boomerangs 20 22 10 Price of oranges 1 1.1 10 Price of boomerangs 3 3.1 3.33 Nominal GDP 160 183.7 14.8 Real GDP in 2020 price 160 171 6.9 Real GDP in 2021 price 172 183.7 6.8 Real GDP in chained prices, benchmarked 171.9 183.7 6.85 Inflation rate can be calculated as follows: Paasche: Inflation rate Paasche =Nominal GDP − Real GDP 2020 = 14.8 − 6

4th Edition

ISBN: 9780393603767

Author: Charles I. Jones

Publisher: W. W. Norton & Company

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Question

Chapter 2, Problem 6E

To determine

Illustrate the missing real GDP in 2018 and 2020

Expert Solution & Answer

Chapter 2 Solutions

Macroeconomics (Fourth Edition)

Ch. 2 - Prob. 1RQ Ch. 2 - Prob. 2RQ Ch. 2 - Prob. 3RQ Ch. 2 - Prob. 4RQ Ch. 2 - Prob. 1E Ch. 2 - Prob. 2E Ch. 2 - Prob. 3E Ch. 2 - Prob. 4E Ch. 2 - Prob. 5E Ch. 2 - Prob. 6E

Ch. 2 - Prob. 7E Ch. 2 - Prob. 8E Ch. 2 - Prob. 9E

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