Consider an economy that produces and consumes bread and automobiles. The table below presents the data for two different years:    show work       Bread (a loaf)     Automobile  Year  Price  Quantity     Price  Quantity  2013  $10  500,000     $50,000  100  2021  $20  450,000     $60,000  150    (1) Using the Year 2013 as the base year, compute the following statistics Nominal GDP for both 2013 & 2021   Real GDP for 2021 GDP deflator for 2021

Macroeconomics: Principles and Policy (MindTap Course List)
13th Edition
ISBN:9781305280601
Author:William J. Baumol, Alan S. Blinder
Publisher:William J. Baumol, Alan S. Blinder
Chapter6: How Statisticians Measure Inflation
Section6.A: How Statisticians Measure Inflation
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Consider an economy that produces and consumes bread and automobiles. The table below presents the data for two different years:    show work   

  

Bread (a loaf) 

  

Automobile 

Year 

Price 

Quantity 

  

Price 

Quantity 

2013 

$10 

500,000 

  

$50,000 

100 

2021 

$20 

450,000 

  

$60,000 

150 

 

(1) Using the Year 2013 as the base year, compute the following statistics

  1. Nominal GDP for both 2013 & 2021  
  2. Real GDP for 2021
  3. GDP deflator for 2021 
  4. Cost of basket for both 2013 & 2021 
  5. CPI (consumer price index) for 2021

 

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