Question
a. An economy produces three goods: orange, mango and mango juice. It is assumedthat half of the mango are bought and consumed as final good;
a.An economy produces three goods: orange, mango and mango juice. It is assumedthat half of the mango are bought and consumed as final good; the other half is used to produce mango juice.
In 2019, 400 KGs of oranges are produced at Rs.60/kg, 1000 KGs of mangoes are produced at 120/kg, and 150 Glasses of mango juice are produced at Rs.200/glass.
In 2020, 425 KGs of oranges are produced at Rs.55/kg, 1250 KGs of mangoes are produced at 140/kg, and 200 glasses of mango juice are produced at Rs.210/glass.
Find the following:
Assuming 2019 is the base year; calculate the real GDP, nominal GDP and GDP deflator in 2019 and 2020.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started