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  3. 2 an economy produces 5 goods the quantities produced and...

Question: 2 an economy produces 5 goods the quantities produced and...

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2. An economy produces 5 goods. The quantities produced and the prices of the 5 goods in year 1 and year 2 are shown below: Good A Good B Good C Good D Good E Year 1 PQ1 30 100 50 200 20 300 80 100 40 100 ear P2 Q2 32 100 49 210 21 295 82110 40 95 (a) Let year 1 be the base year (i) Calculate the nominal GDP and real GDP in year 1 and year 2 (ii) Calculate the percentage changes from year l to year 2 in nominal GDP and real GDP (b) Calculate the equal-weighted diffusion index of (i) real GDP in year 2 (ii) nominal GDP in year 2

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