Consider the following data on Prices and Quantities of T-Shirts and Pajamas on the attached image. (i) Calculate the total value of goods and services at current prices in this economy each year? (i) Calculate the total value of goods and services at constant prices in this economy each year? (Note: GDP deflator for 2015 is 100) (ii). Whatisthe growth rate of RealGDP between 2016and 2017?

Consider the following data on Prices and Quantities of T-Shirts and Pajamas on the attached image. (i) Calculate the total value of goods and services at current prices in this economy each year? (i) Calculate the total value of goods and services at constant prices in this economy each year? (Note: GDP deflator for 2015 is 100) (ii). Whatisthe growth rate of RealGDP between 2016and 2017?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter5: Buying The Necessities

Section: Chapter Questions

Problem 14AA

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Question

1. Consider the following data on Prices and Quantities of T-Shirts and Pajamas on the attached image.

(i) Calculate the total value of goods and services at current prices in this economy each
year?
(i) Calculate the total value of goods and services at constant prices in this economy each
year? (Note: GDP deflator for 2015 is 100)
(ii). Whatisthe growth rate of RealGDP between 2016and 2017?
(iv). What wasthe growth rate ofNominalGDP between 2016and 2017?
(v) Was the growth rate of real GDP higher or lower that the growth rate of nominal
GDP?Explain.
(vi) Using 2015 asthe base year, calculate the CPI for each year.
(vii). Calculate the inflation rate for 2015, 2016 and 2017.