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Suppose There Are Only Three Goods in an Economy (A) Calculate Nominal GDP for 2016 and 2017

Question 173

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Suppose there are only three goods in an economy:
 Year  Item  Price  Quantity 2016 Tomatoes $3/1 b.1,000lbs. Squash $1/1 b.600lbs. Smartphones $100202017 Tomatoes $4.50/b.900lbs. Squash $21/b.700lbs. Smartphones $12530\begin{array}{|c|l|c|c|}\hline \text { Year } & \text { Item } & \text { Price } & \text { Quantity } \\\hline 2016 & \text { Tomatoes } & \$ 3 / 1 \mathrm{~b} . & 1,000 \mathrm{lbs} . \\\hline & \text { Squash } & \$ 1 / 1 \mathrm{~b} . & 600 \mathrm{lbs} . \\\hline & \text { Smartphones } & \$ 100 & 20 \\\hline & & & \\\hline 2017 & \text { Tomatoes } & \$ 4.50 / \mathrm{b} . & 900 \mathrm{lbs} . \\\hline & \text { Squash } & \$ 21 / \mathrm{b} . & 700 \mathrm{lbs} . \\\hline & \text { Smartphones } & \$ 125 & 30 \\\hline\end{array}
(A) Calculate nominal GDP for 2016 and 2017 .
(B) Calculate the percentege change in GDP fram 2016 to 2017 using 2016 prices and 2017 prices.
(C) Calculate the percentage change in real GDp fram 2016 to 2017 using yau answer fram (B).
(D) What is the GDP deflatar far 2017 if it is equal to 1.D in 2016 ?

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(A) Naminal GDP in 2016 and 2017 are blured image an...

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