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a. Suppose that only two goods are produced in an economy. The prices and the quantity produced in 2020 and 2021 are given in the
a. Suppose that only two goods are produced in an economy. The prices and the quantity produced in 2020 and 2021 are given in the following table: Price f Quantity of Price of cars Quantity of pizzas pizzas cars 2021 10.1 3,500,000 21,000,000 " Calculate the nominal and the real GDP of this economy in 2020 and 2021 using the Chained Volume Measure (CVM) method. (50 marks) b. Calculate the GDP deflator in the two years and the growth rate of the price level and real GDP in the country in 2021. (50 marks)
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