Question 5: (Total 8 marks) Discuss the three ways in which the gross domestic product (GDP)...

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Question 5: (Total 8 marks) Discuss the three ways in which the gross domestic product (GDP) can be measured? Why does each of them end up with approximately the same value? (3+2 marks) Consider the following data assuming that these are the only products produced and consumed in the economy: Product Beer Chocolate 2018 Quantity 2018 Price ($) 2019 Quantity 2019 Price (S) 1 4 2 5 3 7 6 8 Using 2018 as the base year answer the following questions: a. What was the nominal GDP in 2018 and 2019? (1 mark) b. What was the real GDP in 2018 and 2019? (1 mark) C. What was the GDP deflator in 2018 and 2019? (1 mark) Question 5: (Total 8 marks) Discuss the three ways in which the gross domestic product (GDP) can be measured? Why does each of them end up with approximately the same value? (3+2 marks) Consider the following data assuming that these are the only products produced and consumed in the economy: Product Beer Chocolate 2018 Quantity 2018 Price ($) 2019 Quantity 2019 Price (S) 1 4 2 5 3 7 6 8 Using 2018 as the base year answer the following questions: a. What was the nominal GDP in 2018 and 2019? (1 mark) b. What was the real GDP in 2018 and 2019? (1 mark) C. What was the GDP deflator in 2018 and 2019? (1 mark)

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Measuring GDP 1 Production Approach This method calculates GDP by summing the value added at each st... View the full answer