Assume that an economy produces only lemonade and cookies. The output and prices in 2019 and 2020 are as follows: 2019 2019 Output Prices Lemonade 200 glasses $1 per glass Cookies 100 cookies $2 per cookie 2020 Output 300 glasses 2020 Prices $2 per glass 100 cookies $2 per cookie Suppose that 2019 is the base year. What is the GDP deflator in 2020? Enter its value below. Hint: GDP deflator employs quantity weights from the current year (i.e., 2020).
Assume that an economy produces only lemonade and cookies. The output and prices in 2019 and 2020 are as follows: 2019 2019 Output Prices Lemonade 200 glasses $1 per glass Cookies 100 cookies $2 per cookie 2020 Output 300 glasses 2020 Prices $2 per glass 100 cookies $2 per cookie Suppose that 2019 is the base year. What is the GDP deflator in 2020? Enter its value below. Hint: GDP deflator employs quantity weights from the current year (i.e., 2020).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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