The table below is extracted from HappylandRepublic, Bureau of Statistics records for 2019-2020. Use the information in this table to answer the questions that follow. Items
The table below is extracted from HappylandRepublic, Bureau of Statistics records for 2019-2020. Use the information in this table to answer the questions that follow.
|
Items |
Base year 2019 |
2020 |
|
|
|
|
Production |
|
Production |
Price |
|
Used cloth (units) |
4,000 |
50.00 |
5,000 |
60.00 |
|
Components used tractor factory production (units) |
8,000 |
500.00 |
11,000 |
1,200.00 |
|
Cloth (units) |
8,000 |
25.00 |
12,000 |
30.00 |
|
Beef gifts during cultural festival (Kg) |
1,500 |
2.00 |
1,700 |
3.00 |
|
Milk (litres) |
5,000 |
1.30 |
7,000 |
2.50 |
|
Computers (Units) |
2,000 |
500.00 |
2,500 |
600.00 |
|
Printers (Units) |
500 |
300.00 |
400 |
355.00 |
|
Raw materials for car assembling plant (Units) |
4,500 |
250.00 |
4,450 |
300.00 |
1. Calculate HappylandRepublic’s nominal
2. Double counting must be avoided when measuring GDP. State and examine four (4) transactions that are excluded from GDP to avoid overstating the size of the economy of a nation.
1) Real GDP of 2020 ( Base year = 2019)
| Production | Price | Total |
| 5000 | 50 | 250,000 |
| 11000 | 500 | 55,00,000 |
| 12000 | 25 | 300,000 |
| 1700 | 2 | 3400 |
| 7000 | 1.30 | 9100 |
| 2500 | 500 | 1250,000 |
| 400 | 300 | 120,000 |
| 4450 | 250 | 11,12,500 |
Real GDP = $8545000
Step by step
Solved in 5 steps
