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Please answer the following question: 4. The economy of Rustica produces only two products, carrots and tractors. In 2019, it produced 5 million kilos of
Please answer the following question:
4. The economy of Rustica produces only two products, carrots and tractors. In 2019, it produced 5 million kilos of carrots and 2000 tractors. In 2020, production of carrots increased to 6 million and tractors to 2200. If the price of carrots increased from $2 to $2.50 per kilo and of tractors from $50 000 to $52 000 a. Calculate the value of nominal GDP in 2019 and 2020. b. Calculate the value of real GDP in 2019 and 2020. c. What is the value of the GDP deflator between 2019 and 2020. 2019 2020 Qty Prices Nominal Real Qty Prices Nominal Real GDP GDP GDP GDP Carrots Tractors TOTALSStep by Step Solution
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