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Assume an Economy Produces Just Cars and Computers; Use the Information

Question 29

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Assume an economy produces just cars and computers; use the information in the table below to answer the following questions about the GDP.
 Cars  Camputers  Year  Quantity  Price  Quantity  Price 2009100$10,0001,000$1,0002010110$12,0001,100$900\begin{array} { | l | l | c | l | c | } \hline & { \text { Cars } } & & { \text { Camputers } } \\\hline \text { Year } & \text { Quantity } & \text { Price } & { \text { Quantity } } & \text { Price } \\\hline 2009 & 100 & \$ 10,000 & 1,000 & \$ 1,000 \\\hline 2010 & 110 & \$ 12,000 & 1,100 & \$ 900 \\\hline\end{array} (1)Calculate nominal GDP in 2009 and 2010.What is the growth rate in nominal GDP?
(2)Using 2009 as a base year,calculate real GDP in 2010.What is the growth rate in real GDP?
(3)Calculate the GDP deflator in 2010.

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(1)Nominal GDP in 2009 = (100 × $10,000)...

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