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Question 44

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\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad Table 2.5
\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad 2012 \quad \quad 2013
\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad Quantity Price \quad Quantity Price
 Pineapples 20$0.5025$0.55 Milkshakes 701.50901.75 Lipstick 202.00302.25 Bookmarks 350.75351.00\begin{array} { | l | c | c | c | c | } \hline \text { Pineapples } & 20 & \$ 0.50 & 25 & \$ 0.55 \\\hline \text { Milkshakes } & 70 & 1.50 & 90 & 1.75 \\\hline \text { Lipstick } & 20 & 2.00 & 30 & 2.25 \\\hline \text { Bookmarks } & 35 & 0.75 & 35 & 1.00 \\\hline\end{array}
Table 2.5 gives quantities and prices for each good produced in a simple economy in 2012 and 2013.
-Refer to Figure 2.5.Calculate nominal and real GDP for 2012 and 2013.Assume 2012 is the base year.What is the value of the GDP deflator for 2012 and for 2013?

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Nominal GDP in 2012 = (20 × $0.50)+ (70 ...

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