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1. In 2003, A was 1,507 billion dollars, B was 7.274 billion dollars, C was 2.054 billion dollars, D was 1.624 billion dollars and E was 505 000 million. Calculate: a. aggregate spending. b. aggregate income. c. Gross Domestic Product (GDP). d. the government budget deficit. e. saving families. f. government savings. g. national saving. h. indebtedness to the rest of the world.
2. Tropic Republic produces only bananas and coconuts.
The base year is 2005 and the tables show the quantities produced and prices.
Amounts
2005
2006
Bananas
1000 clusters
1100 clusters
Coconut
500 clusters
525 clusters
Prices
$ 2 per cluster
$ 3 per cluster
$ 10 per cluster
$ 8 per cluster
a. Calculate the nominal GDP in 2005 and 2006 Tropic Republic. b. Calculate the GDP in 2006 using the method of the base year prices. c. Compute the GDP deflator in 2006.
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