The table shows the Quantity Consumed and the Price of Good
Base Year
Current Year
Price of good A
$100
$200
Quantity of good A
100
200
Price of good B
$100
$100
Quantity of good B
100
100
In the exhibit, the citizens of the country come to desire more of good A. As a result, the quantity and price of the good both rise.
a.
Compute the nominal GDP in the base year and the current year.
b
Compute the real GDP in the base year and the current year (in base-year prices).
c.
Compute the GDP deflator in the current year, using your answers to parts a and b.
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The table shows the Quantity Consumed and the Price of Good
In the exhibit, the citizens of the country come to desire more of good A. As a result, the quantity and price of the good both rise.
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Related textbook solutions
Related questions
Exhibit: Quantity Consumed and Price of Good
| Base Year | Later Year | |
|---|---|---|
| Price of good A | 100 | 200 |
| Quantity of good A | 100 | 200 |
| Price of good B | 100 | 100 |
| Quantity of good B | 100 | 100 |
Compute the GDP deflator(Paasche index) in the later year. (Input answer in bow in this manner: 2.665. Round up to 3 decimals)
The table below shows total output for an economy over 2 years.
| 2012 | Price | Quantity |
| Good A | $1.00 | 100 units |
| Good B | $2.00 | 200 units |
| Good C | $5.00 | 100 units |
| 2013 | Price | Quantity |
| Good A | $2.00 | 120 units |
| Good B | $3.00 | 200 units |
| Good C | $10.00 | 98 units |
TABLE 20-5
16) Refer to Table 20-5. The implicit GDP deflator in 2013, when 2012 is used as the base year, was approximately
Select one:
a. 105.
b. 160.
c. 180.
d. 193.
e. 203.
