a what is the difference between GDP and Output b the economy of Shelbyville produces two types of goods lemons and cars The following table provides its annual production and market prices for the year 2020, 2021 and 2022 2020 2021 2022 Quantity Price Quantity Price Quantity Price lemons 100 1 110 1 25 130 1 5 cars 100 5 127 5 140 6 (i) calculate real GDP for all years if the base year is 2021 (ii) calculate nominal GDP for all years (iii) what is the growth rate between2020 21 and 2021 22 (iv) obtain GDP deflator for all years (v) find the inflation rate between 2020 21 and 2021 22 using GDP deflator c how does using a base year when calculating real GDP help us obtain what we are really looking for growth

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Question: a. what is the difference between GDP and Output? b. the economy of Shelbyville produces two types of goods: lemons and cars. The following table

a. what is the difference between GDP and Output?

b. the economy of Shelbyville produces two types of goods: lemons and cars. The following table provides its annual production and market prices for the year 2020, 2021 and 2022

	2020		2021		2022
	Quantity	Price	Quantity	Price	Quantity	Price
lemons	100	1	110	1.25	130	1.5
cars	100	5	127	5	140	6

(i) calculate real GDP for all years if the base year is 2021.

(ii) calculate nominal GDP for all years

(iii) what is the growth rate between2020-21 and 2021-22.

(iv) obtain GDP deflator for all years.

(v) find the inflation rate between 2020-21 and 2021-22 using GDP deflator.

c. how does using a base year when calculating real GDP help us obtain what we are really looking for: growth.

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