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The country of Danaca has produced the following quantity of gauges and pota- toes, with the price of each listed in dollar terms: 2031 2002
The country of Danaca has produced the following quantity of gauges and pota- toes, with the price of each listed in dollar terms: 2031 2002 Good Quantity Price Quantity Price Gauges 8030 $4 10000 $3 Potatoes 6m0 $8 5000 $14 (a) (4 marks) What is the nominal GDP for both years? (b) (4 marks) Using 2001 as the base year, what are the price indexes f0r 2001 and 2002? (c) (2 marks) What is the ination rate using this index? (d) ( 4 marks) Calculate the real output for each year. (e) ( 4 marks) What is the percent change in n0minal output ? in real output? (f) (2 mark) Is there a difference between the two growth rates calculated in (2)? Explain
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