Assume an Economy Produces Just Cars and Computers;use the Information

question 159

Essay

Assume an economy produces just cars and computers;use the information in the table below to answer the following questions about the GDP.
$$\begin{array} { | l | l | l | l | l | } \hline &{ \text { Cars } } && { \text { Camputers } } \\\hline \text { Year } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \\\hline 2018 & 100 & \$ 10,000 & 1,000 & \$ 1,000 \\\hline 2019 & 110 & \$ 12,000 & 1,100 & \$ 900 \\\hline\end{array}$$ (1)Calculate nominal GDP in 2018 and 2019.What is the growth rate in nominal GDP?
(2)Using 2018 as a base year,calculate real GDP in 2019.What is the growth rate in real GDP?
(3)Calculate the GDP deflator in 2019.

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