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2 GDP calculations This question can be solved by hand but we strongly advice you to solve the question using an excel or google spread
2 GDP calculations This question can be solved by hand but we strongly advice you to solve the question using an excel or google spread sheet. You can watch a Youtube video or ask Chat GPT for help in using the spreadsheet. Using a spread sheet will make the calculations very quick and will be a tool that helps you throughout your life. Consider the following tables of output. Products 2019 Prices 2019 Quantities 2020 Prices 2020 Quantities 2021 Prices 2021 Quantities Automobiles 10 10 9 10 10 10 Home Products 10 12 11 20 20 15 Entertainment Services 12 5 5 6 10 6 Table 1: Product prices and quantities These tables correspond to the Years 2019-2021, pre-pandemic and pandemic years. (a) Compute sales in each sector. Compute total Nominal GDP in each year. (b) Explain which sectors experience a surge in prices, which one a decline in production. Explain why. (c) Compute Real GDP using 2019, 2020, and 2021 as base prices. Are there big differences? (d) Explain verbally what is the purpose of constructing GDP using chained prices
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