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HI5003 Economics for Business -Tutorial Questions

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Assessment Question Week 7 and 8
Measuring the size of the economy

Question 4 7 Marks
The table below is extracted from Happy land Republic, Bureau of Statistics records for 2018-2019. Use the information in this table to answer the questions that follow.

Statistics records

i. Calculate Happy Land Republic’s nominal GDP and real GDP in 2016 (4 Marks)
ii. Why does real GDP always defer from nominal GDP? (3 Marks)

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