In 2020, the total consumption was $25 trillion in Aceland. Domestic people

invested $20 trillion, of which $10 trillion was carried out overseas. Foreigners accumulated $5

trillion investment in Aceland, spent $2 trillion on local goods and service when they travelled

in the country, and imported $10 trillion from Aceland. And Aceland's net export is $5 trillion,

while Aceland government expenditure was $10 trillion. All the above figures are quoted in

2019 dollars.

a. (6 marks) Calculate GDP and the consumption of Aceland residents in 2019 in Aceland.

b. (7 marks) The inflation rate calculated by GDP deflator is 5% in 2019, if we use 2018

as the base year. Nominal GDP growth rate is 10% from 2018 to 2019. Find real GDP

in 2018, real GDP in 2019 and the real GDP growth rate from 2018 to 2019. (Round all

answers to two decimals)

c. (7 marks) The population of Aceland is 2 billion, while real GDP per person is $20,000

in Betaland. Does a typical Aceland resident have better well-being than a typical

Betaland resident? Briefly explain.