Ask Question
11 June, 20:47

onsider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the following questions. Assume that the base year is 2015. Good 2015 Price 2015 Quantity 2016 Price 2016 Quantity A $2 250 $3 200 B $3 300 $2 400 C $4 400 $5 500 What was the gross domestic product (GDP) deflator in 2016

+4
Answers (1)
  1. 11 June, 21:27
    0
    108.34

    Explanation:

    The computation of gross domestic product (GDP) deflator in 2016 is shown below:-

    For computing the Gross domestic Product deflator first we need to find out the Nominal GDP of 2016 and Real GDP of A, B and C which is here below:-

    Nominal GDP of 2016 = ($3 * 200) + ($2 * 400) + ($5 * 500)

    = $600 + $800 + $2,500

    = $3,900

    Real GDP of A, B and C = Price base Year 2015 * Quantity current year 2016

    = $2 * 200 + $3 * 400 + $4 * 500

    = $400 + $1,200 + $2,000

    = $3,600

    Gross domestic Product deflator = Nominal Gross domestic Product : Real Gross domestic Product * 100

    = $3,900 : $3,600 * 100

    = 108.34
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “onsider the following data that gives the quantity produced and unit price for three different goods across two different years to answer ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers