1. IAn economy produces goods X and Y but consumes goods Y and Z. Quantities and prices per unit for years 2005 and 2006 are as follows: 2005 Quantity 10 Price 4 2006 $2000 $1000 $1 Good X Good Y Good Z 1000 • The base year is 2005 a. Compute the real output (GDP) growth rate from 2005 to 2006. b. Compute the inflation rate from 2005 to 2006 using the GDP deflator. c. Compute the inflation rate from 2005 to 2006 using the CPI. Quantity 12 6 Price 1000 $3000 $500 $1
1. IAn economy produces goods X and Y but consumes goods Y and Z. Quantities and prices per unit for years 2005 and 2006 are as follows: 2005 Quantity 10 Price 4 2006 $2000 $1000 $1 Good X Good Y Good Z 1000 • The base year is 2005 a. Compute the real output (GDP) growth rate from 2005 to 2006. b. Compute the inflation rate from 2005 to 2006 using the GDP deflator. c. Compute the inflation rate from 2005 to 2006 using the CPI. Quantity 12 6 Price 1000 $3000 $500 $1
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Measuring A Nation's Income
Section: Chapter Questions
Problem 6PA
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