Question

6. You are given the following information about all of the goods in an economy. Note that some domestically produced goods will be sold within the country and some will be sold in other countries. Assume that Year 1 is the base year Total Domestically Produced Consumer Goods Total Domestically Produced Capital Goods Exports of Capital Goods Exports of Consumer Goods Imports of Capital Goods Imports of Consumer Goods Year 1 Quantity Price 100 $1.50 50 $3.00 20 $3.00 15 $1.50 $3.25 $1.10 Year 2 Quantity Price 105 $1.60 54 $3.10 22 $3.10 16 $1.60 $3.50 12 $1.00 What is the dollar value of total consumption in the country in Year 1? What is nominal GDP in Year 1? What is real GDP in Year 2? What is the value for the country's CPI in Year 2?

Answer 1

i) Hollow value in the years for Consrapion I Totul domeshedily produced t imports for Consumer goods - Pricexqurshty 2 100x1.5 t loxlil = 1506 1 i year Nernical Gasp is Cakolated for the Corrent - Nappagest a pricegeart & postly year = looxinst 50x3 + 20x3 115x1.5 + 3.25x5 floor = 150 + 150 tbot 22.5t 16.25 til Alciolger $40 (approx) ---(1)

1 Mi Nomiralabp years - Pyerax qyer - 105x1.66 54x3.1 + 22x3.1 t 16x1.6 +6x3.5+ 12x1 = 1687 167.4 +68.2 + 25 f +21+12 (Nippogen ? $ 462.2) - etio - Now heal app is calculated from the bare your Here bare year = Year 1 | so price will be taken of the base ged Rippyera Price gasi) x quantity years - 15x105+ 3x54 + 3622 +1.5x16 + 3.25 * 6 x12 - 157.5+ 162 +66+ 2024+19.5+ 13.2 Perpyari' & 442.2 J

A Now - CPI yer 2 = na Napp year 21 I Namp basegar) Xloo (4622) Xloo Pleyern 115.55