The table below is extracted from Goodland Republic Bureau of Statistics records for 2016 -2017. Use the information to answer the questions that follow.

2

HI5003 Economics for Business: First Tutorial Submission Question, T1 2020

Assessment Question Week 8:

Marco-economics:

Measuring the size of the economy

Question 2

The table below is extracted from Goodland Republic Bureau of Statistics records for 2016 -2017. Use the information to answer the questions that follow.

Goodland Economy 2013 and 2018

Examine the status of the economic welfare in Goodland Republic in 2018 based on your GDP deflator, nominal GDP and Real GDP. Also, explain the reasons why it is necessary to calculate real GDP. Show your work.

I tem Price 2017 (Base year) Price 2018 Production Price per Unit (S) Production Price per Unit (S) Rice (000 tons) 50,000 1.50 55,000 2.00 Wheat (000 tons) 00,000 2.00 98,000 .50 Tractors mid-size (units) 50,000 23,000.00 45,000 24,500.00 Cotton (000 tons) 120,000 100.00 110.000 120.00 Used cars ('00) 5,000 5,000.00 6,000 ,000.00 Manufacture garments (000 tons) 150,000 50.00 145,000 70.00 Eggs (000 Trays 2,000 2.50 2,300 3.50 Coca Cola ('000 litres) 6.000 0.80 6.500 1.20 Pepsi Cola ('000 litres) 700 1.10 850 Beef COO0 tons 1.50 5,000 6.50 Second hand cloths (000 tons) 4,800 8.50 500 15.00 450 25.00 Alcoholic Beverages (000 litres) 500 3.25 600 3.75 Milk (OOO) 7,000 2.30 7,500 2.50