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The data below shows the production statistics for a two sector economy in 2018 and 2019. 2018 Items P Q Bread $3.00 120 loaves
- The data below shows the production statistics for a two sector economy in 2018 and 2019.
2018
| Items | P | Q |
| Bread | $3.00 | 120 loaves |
| Flour | $1.50 | 800 lbs |
| Rice | $1.20lb | 600 lbs |
2019
| Items | P | Q |
| Bread | $3.10 | 100 loaves |
| Flour | $1.10 | 750 lbs |
| Rice | $1.15lb | 900 lbs |
- Calculate GDP in current prices for 2018 and 2019.
- Using 2019 as the base year calculate real GDP for 2018 and 2019.
- What is the percentage change in GDP in current prices for 2018 to 2019.
- What is the percentage change in GDP in real prices for 2018 to 2019.
- What is the value of the deflators for 2018 and 2019.
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Solution To calculate GDP in current prices for 2018 and 2019 we need to multiply the quantity of ea...
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Cornerstones of Financial Accounting
Authors: Jay Rich, Jeff Jones
4th edition
978-1337690881, 9781337669450, 1337690880, 1337690899, 1337669458, 978-1337690898
