Question
Can you please confirm that this solution is correct. According to the table we have to solve the problem: Items Base year 2019 2020 Production
Can you please confirm that this solution is correct.
According to the table we have to solve the problem:
| Items | Base year 2019 | 2020 | ||
| Production | Price | Production | Price | |
| Used cloth (units) | 4,000 | 50.00 | 5,000 | 60.00 |
| Components used tractor factory production (units) | 8,000 | 500.00 | 11,000 | 1,200.00 |
| Cloth (units) | 8,000 | 25.00 | 12,000 | 30.00 |
| Beef gifts during cultural festival (Kg) | 1,500 | 2.00 | 1,700 | 3.00 |
| Milk (litres) | 5,000 | 1.30 | 7,000 | 2.50 |
| Computers (Units) | 2,000 | 500.00 | 2,500 | 600.00 |
| Printers (Units) | 500 | 300.00 | 400 | 355.00 |
| Raw materials for car assembling plant (Units) | 4,500 | 250.00 | 4,450 | 300.00 |
Calculate Happyland Republic's nominal GDP, real GDP in 2020. Also, calculate the GDP deflator if 2019 is used as the base year.
Myanswerisasfollows,pleasecanyou guide me regarding the solution.
| Items | Base year 2019 | 2020 | |||||
| Production | Price | Production | Price | Nominal GDP
| Real GDP
| ||
| Used cloth (units) | 4,000 | 50.00 | 5,000 | 60.00 | 5000*60=300000 | 5,000*50=250000 | |
| Components used tractor factory production (units) | 8,000 | 500.00 | 11,000 | 1,200.00 | 11,000*1,200= 13200000 | 5500000 | |
| Cloth (units) | 8,000 | 25.00 | 12,000 | 30.00 | 12,000*30=360000 | 300000 | |
| Beef gifts during cultural festival (Kg) | 1,500 | 2.00 | 1,700 | 3.00 | 5100 | 3400 | |
| Milk (litres) | 5,000 | 1.30 | 7,000 | 2.50 | 17500 | 9100 | |
| Computers (Units) | 2,000 | 500.00 | 2,500 | 600.00 | 1500000 | 1250000 | |
| Printers (Units) | 500 | 300.00 | 400 | 355.00 | 142000 | 120000 | |
| Raw materials for car assembling plant (Units) | 4,500 | 250.00 | 4,450 | 300.00 | 1335000 | 1112500 | |
| GDP Total | 16859600 | 8545000 | |||||
GDP deflator in 2020= 16,859,600 / 8,545,000 * 100
GDP deflator in 2020 =197.30
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Foundations Of Global Financial Markets And Institutions
Authors: Frank J. Fabozzi, Frank J. Jones, Francesco A. Fabozzi, Steven V. Mann
5th Edition
0262039540, 978-0262039543
