/ ESConsider an economy that produces maize and bicycles. The following Table shows productionand price information in this economy in 2015 and 2020.Price of a bicyclePrice of a bag of maizeNumber of bicyclesNumber of bags of maize2015500100700005000020206501208500052000Now answer the questions that follow.a) Using 2015 as the base year, compute the following statistics: nominal GDP, real GDP,and the implicit price deflatorb) By how much have prices risen between 2015 and 2020

Nominal GDP is the current market value of the goods abd services produced in the economy. Real GDP…

Answered: a) Using 2015 as the base year, compute…

a) Using 2015 as the base year, compute the following statistics: nominal GDP, real GDP, and the implicit price deflator b) By how much have prices risen between 2015 and 2020

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Measuring A Nation's Income

Section: Chapter Questions

Problem 9PA

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Question

ES
Consider an economy that produces maize and bicycles. The following Table shows production
and price information in this economy in 2015 and 2020.
Price of a bicycle
Price of a bag of maize
Number of bicycles
Number of bags of maize
2015
500
100
70000
50000
2020
650
120
85000
52000
Now answer the questions that follow.
a) Using 2015 as the base year, compute the following statistics: nominal GDP, real GDP,
and the implicit price deflator
b) By how much have prices risen between 2015 and 2020

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