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The economy of Sumer produces only three products: rice, pajamas, and beer. The base year is 2018. The quantities and prices of these products
The economy of Sumer produces only three products: rice, pajamas, and beer. The base year is 2018. The quantities and prices of these products in 2018 and 2019 are shown in the table below. Quantity 2018 Price 2019 Nominal GDP Rice 430 $5 $ Quantity 480 Price Nominal GDP Price Real GDP $5.7 $ $5 $ Pajamas 190 15 225 17 15 Beer 110 18 120 22 18 Total a. Complete the table above. Calculate the nominal and real GDPs for the two years and enter the values in the table below. 2018 Nominal GDP Real GDP $ $ 2019 $ $ b. The value of the GDP deflator for 2019 is Answer to one decimal place. c. Supposing the average inhabitant of Sumer consumes 10 units each of beer and rice and 3 units of pajamas each year, complete the following table. Item Rice Pajamas Beer Total Quantity 2018 Price 2018 Basket cost 2019 Price 2019 Basket cost
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a To calculate the nominal and real GDPs for 2018 and 2019 we need to multiply the quantities of eac...Get Instant Access to Expert-Tailored Solutions
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