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Scenario: a Country Produces Only One Good

question 173

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Scenario: 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.
-Refer to the scenario above.The GDP deflator for Year 2 is ________.


Definitions:

Obligation

A legal or moral commitment to perform or refrain from performing some action.

Commission

A fee paid to an agent or employee for facilitating a sale or service.

Real Estate Agent

A licensed professional who represents buyers or sellers in real estate transactions.

Transaction

A business deal or exchange between two or more parties, which can involve the transfer of goods, services, money, or information.

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