economics.

Assessment Question Week 7 and 8 Measuring the size of the economy Question 4 7 Marks The table below is extracted from Khada Republic, Bureau of Statistics records for 2019-2020. Use the information in this table to answer the questions that follow. Item Base year 2019 2020 Production Price Production Price Used cloth (units) 4,000 50.00 5000 60.00 Components used tractor factory 8,000 500.00 1 1000 1,200.00 production Cloth 8,000 25.00 12,000 30.00 Beef gifts during cultural festival 1,500 2.00 1,700 3.00 Milk litres 5,000 1.30 7,000 2.50 Computers 2000 500.00 2,500 600.00 Printers 500 300.00 400 355.00 Raw materials for car assembling 4500 250.00 4450 300.0 plant i. Calculate Khada Republic's nominal GDP, real GDP in 2020 and GDP deflator (6 Marks) ANSWER: 2021 ii. Examine the importance of a GDP deflator for Khada Republic (1 Mark)