Question

I em extremely confused on how to solve for question 4d. Please help!

Econ303 Homework 1B ar 1 and year 2, there are two products produced in a given economy cars ear two, 250 cars are sold at $16,000 4. 10 points I n ye cars and beef. Su are produced and sold at $15,000 each, and in y 1,000,000 pounds are sold for $8.00 each. (a) Calculate nominal GDP in each year (b) ppose that there are no intermediate goods. In year one, 200 c n year one, 1,000,000 pounds of beef are sold for $7.00 each, and in year two, Calculate real GDP year 1 t using the chain-weighting method. in each year, and the percentage increase in real GDP from o year 2 using year 1 as the base year. Next, do the same calculations (c) Calculate the implicit GDP price deflator and the percentage inflation rate from year 1 to year 2 using fixed price real GDP using year 1 as the base year. Next, do the same calculations using the chain-weighting real GDP (d) Suppose that cars in year 2 are better than cars in year 1. That is, cars are of higher quality in year 2 in the sense that one car in year 2 is equivalent to 1.2 cars in year 1. How does this change your calculations in partis (a) to (c)? Explain any differences