2. GDP Year Price of Tacos 2020 $1 2021 $1 2022 $2 Quantity of Price of Tacos Pizza 100 150 200 $5 $6 $8 Quantity of Pizza 50 50 100 a. Given the data above for a local economy, compute nominal GDP. real GDP, and the GDP deflator for each year, using 2020 as the base year. b. Compute the percentage change in nominal GDP, real GDP, and the GDP deflator in 2021 and 2022 from the preceding year. c. Did economic well-being increase more in 2021 or 2022? Explain.
2. GDP Year Price of Tacos 2020 $1 2021 $1 2022 $2 Quantity of Price of Tacos Pizza 100 150 200 $5 $6 $8 Quantity of Pizza 50 50 100 a. Given the data above for a local economy, compute nominal GDP. real GDP, and the GDP deflator for each year, using 2020 as the base year. b. Compute the percentage change in nominal GDP, real GDP, and the GDP deflator in 2021 and 2022 from the preceding year. c. Did economic well-being increase more in 2021 or 2022? Explain.
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Measuring A Nation's Income
Section: Chapter Questions
Problem 7QR
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Question
![2. GDP
Year Price of
Tacos
2020 $1
2021 $1
2022 $2
Quantity of Price of
Tacos
Pizza
100
150
200
$5
$6
$8
Quantity of
Pizza
50
50
100
a. Given the data above for a local economy, compute nominal GDP. real GDP, and
the GDP deflator for each year, using 2020 as the base year. (
b. Compute the percentage change in nominal GDP, real GDP, and the GDP deflator
in 2021 and 2022 from the preceding year.
c. Did economic well-being increase more in 2021 or 2022? Explain.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7a226bda-9426-4e4f-84c9-cdc78c775807%2Fc2d514bb-6579-4137-b295-e8c8ce0e2763%2F1a1ovn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. GDP
Year Price of
Tacos
2020 $1
2021 $1
2022 $2
Quantity of Price of
Tacos
Pizza
100
150
200
$5
$6
$8
Quantity of
Pizza
50
50
100
a. Given the data above for a local economy, compute nominal GDP. real GDP, and
the GDP deflator for each year, using 2020 as the base year. (
b. Compute the percentage change in nominal GDP, real GDP, and the GDP deflator
in 2021 and 2022 from the preceding year.
c. Did economic well-being increase more in 2021 or 2022? Explain.
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