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Nominal GDP does not account for the change in prices of goods and services. Will the output be affected? Explain:

Work sheet Q1 – Complete the following statement GDP per capita is the real GDP on a per-person basis, it’s usually calculated using the following formula: GDP = Real GDP divided by Q2 – Compare and contrast savings and disposable personal income: Q3 – Nominal GDP does not account for the change in prices of […]

Calculate the rate of inflation for 2020 and 2021 using the GDP deflator as your price index. Assume that 2019 is still the base year.

TASK 1.Suppose people consume 3 different goods. The following table shows the prices and quantities of each good consumed in 2019, 2020, and 2021. a.Calculate nominal GDP in each of the three years. b.Calculate Real GDP in each of the three years, using 2019 as the base year. c.Calculate the rate of inflation for 2020 […]

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