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Table I 2017 Price Quantity Good A $3.00 85 units Good B $2.00 75 units Good C $6.00 105 units 2018 Price Quantity Good A
Table I 2017 Price Quantity Good A $3.00 85 units Good B $2.00 75 units Good C $6.00 105 units 2018 Price Quantity Good A $3.50 90 units Good B $3.00 80 units Good C $7.00 90 units 2019 Price Quantity Good A $1.50 95 units Good B $2.00 100 units Good C $5.00 105 units (i) Using Table I above calculate GDP at market prices for 2017, 2018 and 2019. (4 Marks) (ii) Using Table I calculate the percentage change in GDP at market price from 2018 to 2019 and comment as to whether the economy has grown, declined or stayed the same in market prices.(2 Marks) (iii) Using Table I above calculate real GDP in 2017, 2018 and 2019 expressed in 2019 dollars ie 2019 is the base year. (5 Marks) (iv) Using Table I calculate the percentage change in real GDP from 2018 to 2019 and comment as to whether the economy has grown, declined or stayed the same in real terms.(2 Marks) (v) Calculate the GDP deflators or GDP price index for 2017, 2018 and 2019. NB GDP Deflator or GDP price index = GDP at Market Prices/Real GDP * 100. (2 Marks)
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