The table below contains data for the country of Batterland, which produces only
ID: 1174196 • Letter: T
Question
The table below contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2009.
Prices and Quantities
Year
Price of
Waffles
Quantity of Waffles
Price of Pancakes
Quantity of
Pancakes
2008
$2.00
100
$1.00
100
2009
$2.00
120
$2.00
150
2010
$2.00
150
$3.00
200
2011
$4.00
180
$3.00
220
Refer to Table 1. In 2010, this country's GDP deflator was
77.8.
100.
128.6.
150.
Year
Price of
Waffles
Quantity of Waffles
Price of Pancakes
Quantity of
Pancakes
2008
$2.00
100
$1.00
100
2009
$2.00
120
$2.00
150
2010
$2.00
150
$3.00
200
2011
$4.00
180
$3.00
220
Explanation / Answer
Answer is 128.6 Explanation: While computing the rael GDP, the base year prices shall be taken i.e. price of Year2009. Price of 2009 Price of 2010 Quantity 2010 Nominal GDp Real GDP Waffles 2 2 150 300 300 Pancakes 2 3 200 400 600 Nominal GDP of 2010 700 Real GDP 900 GDP deflator: Nominal GDP/ Real GDP *100 900 /700 *100 = 128.57
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