Question 2: a. Suppose that only two goods are produced in an economy. The prices and the quantity produced in 2020 and 2021 are given
Question 2: a. Suppose that only two goods are produced in an economy. The prices and the quantity produced in 2020 and 2021 are given in the following table: Price of Quantity of Price of cars Quantity of pizzas pizzas cars 2020 10 3,000,000 20,000,000E 500 2021 10.1 3,500,000 21 ,000,000 550 Calculate the nominal and the real GDP of this economy in 2020 and 2021 using the Chained Volume Measure (CVM) method. [3. Calculate the GDP deator in the two years and the growth rate of the price level and real GDP in the country in 2021
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