ECO403 ASSIGNMENT NO. 1 SPRING 2023 (PART-B) || 100% RIGHT SOLUTION || MACROECONOMICS || BY VuTech
Visit Website For More Solutions
www.vutechofficial.blogspot.com
KINDLY, DON’T COPY PASTE
The Case:
PART-B
Suppose the Nominal Gross Domestic Product and Real Gross Domestic Product for two years of the economy of Pakistan are given below. Calculate Gross Domestic Product Deflator in the given table.
Years | Nominal GDP | Real GDP | GDP Deflator |
2019 | Rs 25,000 | Rs 21,000 | ? |
2020 | Rs 41,000 | Rs 39,000 | ? |
Solution
To calculate the Gross Domestic Product (GDP) deflator, we can use the formula:
GDP Deflator = (Nominal GDP / Real GDP) * 100
Using the given data, we can calculate the GDP deflator for each year:
For 2019:
GDP Deflator = (25,000 / 21,000) * 100
= 119.05
For 2020:
GDP Deflator = (41,000 / 39,000) * 100
= 105.13
Therefore, the GDP deflator for 2019 is approximately 119.05, and the GDP deflator for 2020 is approximately 105.13.