Question
3. Suppose one country produces four outputs (three goods and one service). The following table shows the quantity and prices of the four items in
3. Suppose one country produces four outputs (three goods and one service). The following table shows the quantity and prices of the four items in 2020 and 2021. Using the information given and finish the questions below.
| Goods (services) produced | Year 2020 | Year 2021 | ||
| Quantity | Price | Quantity | Price | |
| Washers | 3 | $1,500 | 5 | $1,700 |
| Smartphones | 8 | $900 | 10 | $950 |
| Pick-up trucks | 4 | $35,000 | 4 | $45,000 |
| Higher education | 2 | $15,000 | 2 | $20,000 |
(1) Given the information above, what approach you can use to calculate GDP in this country? Please shortly explain how this approach works?
(2) What is the nominal GDP in 2020 and in 2021? Remember to show your work in detail here.
(3) Use 2020 as the base year, how much is real GDP in 2020 and 2021.
(4) What values of GDP deflator are in 2020 and 2021?
(5) What are nominal and real GDP growth rate from 2020 to 2021 in this country?
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Managerial Economics And Strategy
Authors: Jeffrey M. Perloff, James A. Brander
3rd Edition
0134899709, 978-0134899701
