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Economics Homework Help

Question

1. Complete this table 2017 2016 Cakes $1.50 125 $187.50 Cakes Apples Apples $1.00 Quantity100 $1.00 $1.25 Price 100 150 --$100.001-$100.00 $187.50 (i)"Q() Nominal GDP Growth Rate of 5375.00 $200.00 37s-3200 200 . 201, 2017 : 87.57 = = Nominal GDP 2016 prices or RGDP 2016 in 2017 prices or Growth Rate of Real GDP usingg 2016 prices Growth Rate of Real GDP using g 2017 prices 2. From your numbers in the last two rows of the table, calculate the chain link growth rate of real GDP from 2016 to 2017. Nota Bene: It is the geometric mean of the two (1+g)'s. 3. Given your answers, what is the chain link growth rate of the price level? Nota Bene: Because the growth rates in this question are high, you must use (1+growth rate of nominal GDP)-(1+growth rate of real GDP)(1+growth rate of prices), or 4. Why is g, slightly larger than g,?