The following table shows some data for an economy that produces only two goods: milk and honey. Year Milk Honey Price Quantity Price Quantity (Dollars) (Quarts) (Dollars) (Quarts) 2020 1 200 2 100 2021 1 400 2 200 2022 2 400 4 200 Using 2020 as the base year, compute nominal GDP, real GDP, and the GDP deflator for each year. Year Nominal GDP Real GDP GDP Deflator (Dollars) (Dollars) 2020 2021 2022
The following table shows some data for an economy that produces only two goods: milk and honey. Year Milk Honey Price Quantity Price Quantity (Dollars) (Quarts) (Dollars) (Quarts) 2020 1 200 2 100 2021 1 400 2 200 2022 2 400 4 200 Using 2020 as the base year, compute nominal GDP, real GDP, and the GDP deflator for each year. Year Nominal GDP Real GDP GDP Deflator (Dollars) (Dollars) 2020 2021 2022
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The following table shows some data for an economy that produces only two goods: milk and honey.
Year
|
Milk
|
Honey
|
||
---|---|---|---|---|
Price
|
Quantity
|
Price
|
Quantity
|
|
(Dollars)
|
(Quarts)
|
(Dollars)
|
(Quarts)
|
|
2020 | 1 | 200 | 2 | 100 |
2021 | 1 | 400 | 2 | 200 |
2022 | 2 | 400 | 4 | 200 |
Using 2020 as the base year, compute nominal GDP , real GDP, and the GDP deflator for each year.
Year
|
Nominal GDP
|
Real GDP
|
GDP Deflator
|
---|---|---|---|
(Dollars)
|
(Dollars)
|
||
2020 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
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