1. Business
  2. Economics
  3. assume that in the economy only two goods are produced...

Question: assume that in the economy only two goods are produced...

Question details

Assume that in the Economy only two goods are produced: Computers and TV’s. Macroeconomic information for this economy is given in Table.

a. How much is Nominal GDP in 2017 and 2018? What is the percentage change?

b. How much is Real GDP in 2017 and 2018, by considering 2017 as the base year? What is the percentage change?

c. How much is the GDP deflator in the two years? By what percentage does the price level change from the base year to 2018?

d. What was the growth rate of average labour productivity for the whole economy between 2017 and 2018?

2017 2018
Output (Computers) 100 101
Output (TV's) 200 201
Employment (Computers) 1000 1100
Employment (TV's) 500 400
Price per Computer $1000 $900
Price per TV $500 $400
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution