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Country Y produces only three goods; good A, good B and good C. During the base year (2008), country Y produced 2700 units of good
Country Y produces only three goods; good A, good B and good C. During the base year (2008), country Y produced 2700 units of good A, 5000 units of good B, and 1800 units of good C. During the current year (2019), 2500 units of good A were produced in addition to 5200 units of good B and 1700 units of good C. Prices are shown below: Good 2008 2019 A $5 each $7 each B $10 each 59 each O $12 each $10 each Use the data provided to calculate: (a) Nominal GDP in 2008 (3 marks) (b) Nominal GDP in 2019 and Real GDP in 2019 ( 4 marks ) (c) The economic growth rate between 2008 and 2019 (2 marks ) (d) The inflation rate between 2008 and 2019 ( 3 marks ) (e) Is it possible to have a negative inflation rate? Explain... ( 2 marks )
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