Use following data to answer following questions. A country produces only milk and honey. The base...

  

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Use following data to answer following questions. A country produces only milk and honey. The base year is 2016. Year 2016 2017 2018 Price of Milk $1 $2 $3 Quantity of Milk 100 Quarts 200 Quarts 200 Quarts Price of Honey $2 $2 $4 Quantity of Honey 50 Quarts 100 Quarts 100 Quarts a. Calculate the nominal GDP for 2016, 2017 and 2018. b. Calculate real GDP for 2016, 2017, and 2018. c. Calculate growth rate of nominal and real GDP for 2017 and 2018. d. Are nominal and real GDPs same for a given year? Please explain. e. Calculate the inflation rates for 2017 and 2018 using GDP deflator method. Use following data to answer following questions. A country produces only milk and honey. The base year is 2016. Year 2016 2017 2018 Price of Milk $1 $2 $3 Quantity of Milk 100 Quarts 200 Quarts 200 Quarts Price of Honey $2 $2 $4 Quantity of Honey 50 Quarts 100 Quarts 100 Quarts a. Calculate the nominal GDP for 2016, 2017 and 2018. b. Calculate real GDP for 2016, 2017, and 2018. c. Calculate growth rate of nominal and real GDP for 2017 and 2018. d. Are nominal and real GDPs same for a given year? Please explain. e. Calculate the inflation rates for 2017 and 2018 using GDP deflator method.

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To calculate the nominal GDP we multiply the price of each good by its respective quantity and sum them up To calculate the real GDP we use a base yea... View the full answer