Question 2 The question is based on Table 2 below: Products Shoes Average Price in 2019 110 Computers 99 Average Price i

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Question 2 The Question Is Based On Table 2 Below Products Shoes Average Price In 2019 110 Computers 99 Average Price I 1 (80.99 KiB) Viewed 10 times

Question 2 The question is based on Table 2 below: Products Shoes Average Price in 2019 110 Computers 99 Average Price in 2020 121 148 Total production in 2019 (units) 3500 2000 Total production in 2020 (units) 3700 3000 The economy of Fantasia produces only 2 goods namely Shoes and Computers. The total production and average prices of shoes and computers are displayed in Table 2 above. (a) Compute the nominal GDP of Fantasia for 2019 and 2020 (hint: calculate the total value of production in each year) (5 marks) (b) Compute the real GDP of Fantasia in 2020 using 2019 prices (5 marks) (c) Explain why nominal GDP in 2020 differs from real GDP in 2020 (5 marks) (d) Calculate the changes in prices for both products. How much has price changed from 2019 to 2020? (5 marks) (e) Calculate the GDP deflator for 2020 (5 marks)