420Worksheet1

420Worksheet1 - a. Find nominal GDP in the current year and...

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ECO 420 Worksheet 1 1. Consider an economy that produces only three types ofgoods: apples, bread, and cookies. In the base year (a few years ago), the production and price data were as follows: Fruit Quantity Price Apples 1000 bags $2 per bag Bread 1000 loaves $1 per loaf Cookies 1000 packs $2 per pack In the current year, the production and price data are as follows: Apples 2000 bags $3 per bag Bread 1400 loaves $1 per loaf Cookies 2000 packs $2.50 per pack
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Unformatted text preview: a. Find nominal GDP in the current year and in the base year. What is the percentage increase since the base year? b. Find real GDP in the current year and in the base year. What is the percentage increase since the base year? c. Find GDP deflator for the current year and the base year. By what percentage does the price level change from the current year to the base year? d. Calculate CPI....
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This document was uploaded on 10/28/2011 for the course ECON 420 at UNC.

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