Economics Coursework Example | Topics and Well Written Essays - 250 words

Economics - Coursework Example The GDP deflator for the base year is always equal to 100% by definition. Because of this the Nominal GDP and the Real GDP for the base year are always equal. In this case, the Real GDP for 2002= Nominal GDP for 2002= 1.02 Billion Dimmens since it is the base year. In determining the size of the economy, we look at the nominal GDP between the two years. The year 2002 has a nominal GDP of 1.02 billion dimmens while 2003 has a nominal GDP of 1.08 billion dimmens. Thus the economy has grown in the year 2003. 3. You have been hired by the government as an economic statistician and given the job of calculating the CPI (the chili price index, not the consumer price index). According to the government’s official recipe, the ingredients for a batch of chili are: 3 pounds of hamburger, 2 pounds of tomatoes, and  ½ pound of onions. The base year calculating the CPI is 1996. The prices of the ingredients for chili are determined by an extensive nationwide survey. The current and 1996 prices for the ingredients