Problems and Applications Q5

• 1.GDP Computations
• 2.Percentage Changes

STEP: 1 of 2

The following table shows some data for an economy that produces only two goods: milk and honey.

Year	Milk	Honey
Price	Quantity	Price	Quantity
(Dollars)	(Quarts)	(Dollars)	(Quarts)
2020	1	150	2	100
2021	2	150	4	100
2022	2	300	4	200

Using 2020 as the base year, compute nominal GDP, real GDP, and the GDP deflator for each year.

Year	Nominal GDP	Real GDP	GDP Deflator
(Dollars)	(Dollars)
2020
2021
2022