Calculate the nominal GDP for Country C in year 2.
([(15 X $1) + (12 X $2)] = $39
Problem :
Using , calculate the real GDP for Country C in year
2, using year 1 as the base year.
(15 X $0.50) + (12 X $1) = $19.50
Problem :
Using , calculate the GNP for Country C in year 3 if
candy is produced by foreigners.
(20 X $1.50) = $30
Problem :
Using , calculate the GDP deflator for year 2 using
year 1 as the base year.
GDP deflator = [(nominal GDP) / (real GDP)] – 1
Nominal GDP for year 2 = ($1 X 15) + ($2 X 12) = $39
Real GDP for year 2 = ($.50 X 15) + ($1 X 12) = $19.50