Consider the following data for a hypothetical economy: br> Year Output of A Price of A Output of B Price of B 2021 300 900 1000 80 2022 350 1000…
BBS Macroeconomics for Business · 2080 · Solved Question with Answer
Consider the following data for a hypothetical economy: br>
| Year | Output of A | Price of A | Output of B | Price of B |
| 2021 | 300 | 900 | 1000 | 80 |
| 2022 | 350 | 1000 | 1300 | 120 |
| 2023 | 375 | 1200 | 1700 | 140 |
a. Compute nominal GDP, real GDP, GDP deflator and rate of inflation.
b. Why the real GDP is better measurement of welfare than nominal GDP?