Expert teacher

0.2 Below is some data from the land of milk and honey. Compute the percentage change in nominal GDP, real GDP and the GDP deflator in 2016 and 2017 from the preceding year.(5+5+5=15) Year P (Milk) O (Milk) P (Honey) O (Honey) 2016 100 2 50 2017 200 N 100 2018 2 200 100 (a) Did economic well being raise more in 2016 or 2017? Explain. (b) Why does economist use real GDP rather than nominal GDP to gauge economic well-being? (c) Which contributes more to GDP the production of an economy car or the production of luxury car? Why