. Suppose we have the following data for an economy that produces only three goods, A,...

 

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. Suppose we have the following data for an economy that produces only three goods, A, B and C. The data is for the actual price and quantity produced (output) of each product. Good A output price Good B output price Good C output price 2011 130 $8.00 52 $12.00 55 $75 2012 133 $8.30 54 $12.40 60 $80 (a) Using 2011 as the base year, calculate nominal and real GDP for 2011 and 2012. (10 points). (b) Calculate real economic growth for 2012. (8 points). (c) Calculate the AE price index and rate of inflation for 2012. (8 points). . Suppose we have the following data for an economy that produces only three goods, A, B and C. The data is for the actual price and quantity produced (output) of each product. Good A output price Good B output price Good C output price 2011 130 $8.00 52 $12.00 55 $75 2012 133 $8.30 54 $12.40 60 $80 (a) Using 2011 as the base year, calculate nominal and real GDP for 2011 and 2012. (10 points). (b) Calculate real economic growth for 2012. (8 points). (c) Calculate the AE price index and rate of inflation for 2012. (8 points).

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To calculate nominal and real GDP for 2011 and 2012 using 2011 as the base year we need to multiply ... View the full answer