Table 10-5
A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2009.Prices and Quantities
$$\begin{array} { c c c c c }
\hline \text { Year } & \begin{array} { c }
\text { Price af } \
\text { Mavies }
\end{array} & \begin{array} { c }
\text { Quantity af } \
\text { Mavies }
\end{array} & \begin{array} { c }
\text { Price af } \
\text { Popcarn }
\end{array} & \begin{array} { c }
\text { Quantity df } \
\text { Papentn }
\end{array} \
\hline 2008 & \$ 10.00 & 400 & \$ 5 & 800 \
2009 & 11.00 & 500 & \$ 4 & 900 \
2010 & \$ 12.00 & 600 & \$ 5 & 1000 \
2011 & \$ 12.00 & 600 & \$ & 900
\end{array}$$
-Refer to Table 10-5 What was this country's GDP deflator in 2010?

Question

Table 10-5
A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2009.Prices and Quantities
 $$\begin{array} { c c c c c } 
\hline \text { Year } & \begin{array} { c } 
\text { Price af } \
\text { Mavies }
\end{array} & \begin{array} { c } 
\text { Quantity af } \
\text { Mavies }
\end{array} & \begin{array} { c } 
\text { Price af } \
\text { Popcarn }
\end{array} & \begin{array} { c } 
\text { Quantity df } \
\text { Papentn }
\end{array} \
\hline 2008 & \$ 10.00 & 400 & \$ 5 & 800 \
2009 & 11.00 & 500 & \$ 4 & 900 \
2010 & \$ 12.00 & 600 & \$ 5 & 1000 \
2011 & \$ 12.00 & 600 & \$ & 900
\end{array}$$
-Refer to Table 10-5 What was this country's GDP deflator in 2010?

Quizplus · Accepted Answer

The GDP deflator is calculated as (Nominal GDP / Real GDP) * 100. For 2010, Nominal GDP = (12 * 600) + (5 * 1000) = 7200 + 5000 = 12200. Real GDP (using 2009 prices) = (11 * 600) + (4 * 1000) = 6600 + 4000 = 10600. GDP deflator = (12200 / 10600) * 100 = 115.1.

Table 10-5 a Hypothetical Country of Lahland Produces Only Movies

Table 10-5
a Hypothetical Country of Lahland Produces Only Movies