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The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base
The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2015. Prices and Quantities Year Price of Cereal Quantity of Cereal Price of Milk Quantity of Milk 2015 $4.00 100 $1.50 180 2016 $4.00 120 $2.00 200 2017 $5.00 150 $2.50 200 2018 $6.00 180 $3.50 240 Refer to Table 23-5 and answer all of the following questions in the space provided below. (a) Calculate the nominal GDP for 2015 and 2016. Show all working. (8 points] (b) Using 2015 as the base year, calculate real GDP for 2015 and 2016. Show all working. [8 points] (c) Calculate the GDP deflator for 2015 and 2016. Show all working. [8 points]
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