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b hoaa expands its factory in marysville ohio 7 an...

Question: b hoaa expands its factory in marysville ohio 7 an...

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B) Hoaa expands its factory in Marysville, Ohio. 7. An economy produces the following goods: cars, textbooks, hamburgers, shirts and cotton. The quantities (Q) and prices (P) for the years of 2005 and 2010 are as follows 2 points each Q in 2005 P in 2005 Q in 2010 P in 2010 Textbooks 90 Hamburgers 75 Shirts Cotton 50 $2 $30 100 100 50 8,000 $60 $2 $25 $.6 50 10,000$.8 (a) Calculate nominal GDP for the 2 years. (b) What is the percent change in nominal GDP from year 2005 to 2010. (c) Calculate real GDP using 2005 as the base year for both years. (d) What is the percent change in real GDP from year 2005 to 2010 using 2005 as the base year. (e) Why are the growth rates calculated in 7b and 7d different? Which one more accurately reflects changes in output? (t) Compute the GDP deflator for both years. (g) Using the GDP deflator, find the inflation rate. (h) List one difference between the GDP deflator and the Consumer Price Index as measures of general price levels in the economy

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