Question

3 US VISA APPLICATI... Around Campus Lab Infomation Links Mozilla Firefc #9). Use the following, with Year 1 as the base year: Year 2 Year 1 Quantity Price Quantity Price Machines 20 $100 22 $105 Rice 100 $5 110 $6 Tractors 10 $500 11 $540 #9a). Refer to the table above. What is the value of real GDP in Year 2? #9b). What is the value of the GDP deflator in Year 2?

Answer 1

(a) Real GDP (Year 2); (100 x) + (5 x110) + (500x11) -) &loot 550t 5500 8250 (b) GOP deflation (yeae) = Nominal GDP (Year 2) Xloo Real cop lyear 2) So, Nominal GOP (yea 2); (vexlos) + (110 x6) + (11x540) =) 2310 + 660 + 5940 8910 So, GDP deflahor =) 8910 Xlvo 8250 108