Question
Question 4 The table below is extracted from HappylandRepublic, Bureau of Statistics records for 2019-2020. Use the information in this table to answer the questions
Question 4
The table below is extracted from HappylandRepublic, Bureau of Statistics records for 2019-2020. Use the information in this table to answer the questions that follow.
| Items | Base year 2019 | 2020 | ||
| Production | Price | Production | Price | |
| Used cloth (units) | 4,000 | 50.00 | 5,000 | 60.00 |
| Components used tractor factory production (units) | 8,000 | 500.00 | 11,000 | 1,200.00 |
| Cloth (units) | 8,000 | 25.00 | 12,000 | 30.00 |
| Beef gifts during cultural festival (Kg) | 1,500 | 2.00 | 1,700 | 3.00 |
| Milk (litres) | 5,000 | 1.30 | 7,000 | 2.50 |
| Computers (Units) | 2,000 | 500.00 | 2,500 | 600.00 |
| Printers (Units) | 500 | 300.00 | 400 | 355.00 |
| Raw materials for car assembling plant (Units) | 4,500 | 250.00 | 4,450 | 300.00 |
i. Calculate Happyland Republic's nominal GDP, real GDP in 2020. Also, calculate the GDP deflator if 2019 is used as the base year.
ii. Double counting must be avoided when measuring GDP. State and examine four (4) transactions that are excluded from GDP to avoid overstating the size of the economy of a nation.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Entrepreneurship
Authors: Andrew Zacharakis, William D Bygrave
5th Edition
9781119563099
