Figure 1: Production and Price levels

Quantities (tons) 2019 2020

Strawberry 600 520

Blue Berry 860 720

Goose Berry 680 720

Price ($ million) 2019 2020

Strawberry 24 28

Blue Berry 36 30

Goose Berry 54 62

1.1 Use the production and price data of LOVE Republic and answer the following questions:

a. Calculate the nominal GDP in 2019 and 2020 for LOVE Republic. (4 Marks)

b. Using 2019 as the base year, calculate the real GDP in 2020 for LOVE Republic. (4 Marks)

c. Calculate the GDP deflator in 2020 and explain the function of a GDP deflator. (3 Marks)