A country produces only one good. It produced 5,000 units of the good during Yea

Question

A country produces only one good. It produced 5,000 units of the good during Year 1 and 6,000 units of the good in Year 2. The price of each unit of the good in Year 1 was $280 and it was $320 in Year 2. Suppose Year 1 is taken as the base year for the calculation of GDP. Part 1(1 point) Refer to the scenario above. The real GDP of the country in Year 1 was $ Part 2(1 point) Refer to the scenario above. The nominal GDP of the country for Year 2 was $ Part 3(1 point) Refer to the scenario above. Real GDP of the country has grown by %. Part 4(1 point) Refer to the scenario above. The GDP deflator for Year 2 is . (round first decimal place)

Explanation / Answer

GDP means gross domestic product . A coutnry produces

year 1 5000 units price is 280$ , so GDP is 5000*280= 1400000

Year 2 6000 units price is 320 $ , so GDP is 6000*320 = 1920000

Real GDP = nomianl gdp/ price index

price index = (320/280 )*100 = 114.28

real gdp = 1920000/114.28 = 16800.84

inflator is :- 1920000/16800.84= 114.28

real gdp percentage is 0.875 %

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