a. An economy produces three goods: organ, apple and organ juice. It is assumed that half of the organ are bought and consumed as final good; the other half is used to produce organ juice.
In 2019, 20 KGs of organ are produced at Rs.50/kg, 40 KGs of apple are produced at 100/kg, and 25 Glasses of organ juice are produced at Rs.200/glass.
In 2020, 40 KGs of organ are produced at Rs.80/kg, 60 KGs of apple are produced at 110/kg, and 30 glasses of organ juice are produced at Rs.195/glass.
Find the following:
- Assuming 2019 is the base year; calculate the real and nominal
GDP in 2019 and 2020.
b. Analyze how much Pakistan’s GDP and each of its components is affected by the following transactions? Explain your answers
- Atiya spends 1000 to purchase dinner at the finest restaurant in Karachi
- Your mother spend weekend cleaning your house
- Dalda Banspati Limited Pakistan builds Rs.50 million worth of cooking oil, but consumers only buy Rs. 45 million worth of them.
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