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The country of Econland produces two goods: apples and oranges. The following table shows the quantity of apples and oranges with the price of each
The country of Econland produces two goods: apples and oranges. The following table shows the quantity of apples and oranges with the price of each listed in rupees:
Year 1 | Year 2 | |||
Quantity | Price | Quantity | Price | |
Apples | 8000 | Rs 4 | 10,000 | Rs 3 |
Oranges | 6000 | Rs 8 | 5000 | Rs 14 |
- Assume that the base year is Year 1. Find the growth rate of real GDP from Year 1 to Year 2?
- Calculate the inflation rate from Year 1 to Year 2 using the GDP deflator?
- Rohit, an Indian citizen, owns and manages a pizza shop in New York, United States. He buys fresh cheese and bread produced by U.S. workers, pays bills to a U.S. company, and employs only U.S. citizens. What part, if any, of the pizza shops production is included in U.S. Gross domestic product (GDP)?
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