Consider the data in the following table, which represents the total production of the country Tucommodatia. They produce only consumer goods.
(a) Calculate real GDP for all three years, using 2017 as the base year.
$$\begin{array} { l | c c c }
\hline & 2017 & 2018 & 2019 \
\hline \text { Quantity of } Y & 100 & 105 & 103 \
\text { Quantity of } X & 5 & 3 & 4 \
\text { Price of } Y & \$ 5 & \$ 5 & \$ 5 \
\text { Price of } X & \$ 100 & \$ 105 & \$ 110 \
\hline
\end{array}$$
(b) Calculate the Consumer Price Index (CPI), using 2017 as the base year. Identify whether there was inflation from the previous year.

Question

Consider the data in the following table, which represents the total production of the country Tucommodatia. They produce only consumer goods.
(a) Calculate real GDP for all three years, using 2017 as the base year.
 $$\begin{array} { l | c c c } 
\hline & 2017 & 2018 & 2019 \
\hline \text { Quantity of } Y & 100 & 105 & 103 \
\text { Quantity of } X & 5 & 3 & 4 \
\text { Price of } Y & \$ 5 & \$ 5 & \$ 5 \
\text { Price of } X & \$ 100 & \$ 105 & \$ 110 \
\hline
\end{array}$$ 
(b) Calculate the Consumer Price Index (CPI), using 2017 as the base year. Identify whether there was inflation from the previous year.

Quizplus · Accepted Answer

The Answer of Consider the data in the following table, which represents the total production of the country Tucommodatia. They produce only consumer goods.
(a) Calculate real GDP for all three years, using 2017 as the base year.
 $$\begin{array} { l | c c c } 
\hline & 2017 & 2018 & 2019 \
\hline \text { Quantity of } Y & 100 & 105 & 103 \
\text { Quantity of } X & 5 & 3 & 4 \
\text { Price of } Y & \$ 5 & \$ 5 & \$ 5 \
\text { Price of } X & \$ 100 & \$ 105 & \$ 110 \
\hline
\end{array}$$ 
(b) Calculate the Consumer Price Index (CPI), using 2017 as the base year. Identify whether there was inflation from the previous year.

Consider the Data in the Following Table, Which Represents the Total