Year | 2020 | 2021 |
Q of apple | 500 | 550 |
Q of computer | 5 | ? |
P of Apple | $2 | ? |
P of computer | $1000 | $1000 |
In 2021, the quantity of computers is 3 and the price of apples is $4. Determine the value of real GDP in chained prices in 2020, benchmarked to 2021. Round your answer to the nearest whole number.
Below is the detailed solution.
Step-1 Find value of all gods produced by multiplying the quantity with the price in 2020 as well as 2021.
Step-2 Find the pices of the same basket of goods as in 2021 but at 2020 prices
Step 3- Find CPI
Step 4- Rela GDP in 2020= Gross GDP in 2020/ CPI
Answer is 4457
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