For 2002 Kwakian economy had the following nominal quantities (in billions of dollars) and price indexes (1997 = 100) for each category of expenditure: $$\begin{array} { l c c }
& \text { Nominal Value } & \text { Price Index } \
\hline \text { Consumption } & 423.1 & 125.1 \
\text { Fixed investment } & 112.0 & 111.0 \
\text { Government purchases } & 165.8 & 123.2 \
\text { Exports } & 180.4 & 100.9 \
\text { Imports } & 186.7 & 97.2 \
\text { Change in inventories } & - 3.28 & 111.0 \
\hline
\end{array}$$ a. Calculate the real quantity for each category (to one decimal point).
b. Calculate nominal and real GDP.
c. Find the implicit price deflator (1997 = 100).

Question

For 2002 Kwakian economy had the following nominal quantities (in billions of dollars) and price indexes (1997 = 100) for each category of expenditure: $$\begin{array} { l c c } 
& \text { Nominal Value } & \text { Price Index } \
\hline \text { Consumption } & 423.1 & 125.1 \
\text { Fixed investment } & 112.0 & 111.0 \
\text { Government purchases } & 165.8 & 123.2 \
\text { Exports } & 180.4 & 100.9 \
\text { Imports } & 186.7 & 97.2 \
\text { Change in inventories } & - 3.28 & 111.0 \
\hline
\end{array}$$ a. Calculate the real quantity for each category (to one decimal point).
b. Calculate nominal and real GDP.
c. Find the implicit price deflator (1997 = 100).

Quizplus · Accepted Answer

The Answer of For 2002 Kwakian economy had the following nominal quantities (in billions of dollars) and price indexes (1997 = 100) for each category of expenditure: $$\begin{array} { l c c } 
& \text { Nominal Value } & \text { Price Index } \
\hline \text { Consumption } & 423.1 & 125.1 \
\text { Fixed investment } & 112.0 & 111.0 \
\text { Government purchases } & 165.8 & 123.2 \
\text { Exports } & 180.4 & 100.9 \
\text { Imports } & 186.7 & 97.2 \
\text { Change in inventories } & - 3.28 & 111.0 \
\hline
\end{array}$$ a. Calculate the real quantity for each category (to one decimal point).
b. Calculate nominal and real GDP.
c. Find the implicit price deflator (1997 = 100).

For 2002 Kwakian Economy Had the Following Nominal Quantities (In