Suppose the people of an economy consume only 2 goods, namely bread and shirts. The production of goods and services in this economy consists of 70 units of food, 200 units of clothing and 50 units of...

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Suppose the people of an economy consume only 2 goods, namely bread and shirts. The<br>production of goods and services in this economy consists of 70 units of food, 200 units of<br>clothing and 50 units of machinery for production for both<br>years.<br>Bread<br>Shirts<br>Machinery for<br>production<br>Year 1 price<br>$10<br>$5<br>$20<br>Year 2 price<br>$15<br>$10<br>$25<br>Part (a)<br>Find the nominal GDP for the current year and base<br>year.<br>Show all your workings.<br>Part (b)<br>What is the percentage increase in the CPI? Show all your workings.<br>

Extracted text: Suppose the people of an economy consume only 2 goods, namely bread and shirts. The production of goods and services in this economy consists of 70 units of food, 200 units of clothing and 50 units of machinery for production for both years. Bread Shirts Machinery for production Year 1 price $10 $5 $20 Year 2 price $15 $10 $25 Part (a) Find the nominal GDP for the current year and base year. Show all your workings. Part (b) What is the percentage increase in the CPI? Show all your workings.

Jun 10, 2022

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Suppose the people of an economy consume only 2 goods, namely bread and shirts. The production of goods and services in this economy consists of 70 units of food, 200 units of clothing and 50 units of...

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