I do not know what you want, but here is all I have about this question. This exercise addresses some issues related to calculating real GDP. Consider a model economy with only two goods. The following table shows the prices and quantities of goods produced: (a) Compute nominal GDP YNOM,t for t=1,2,3,4. (b) Compute real GDP Yt for t=1,2,3,4 using year 1 as base year (fixed base year method), i. e., using the prices in year 1. Furthermore, compute the GDP deflator Pt=YtYNOM,t for t=1,2,3,4 and both the annual real GDP growth rates gY,t=Yt1YtYt1 and the inflation rates t=Pt1PtPt1 for t=2,3,4. Report Pt,gY,t and t rounded to four decimal places. (c) Repeat (b) using year 4 as base year. What do you observe? 1) Many countries use the (weighted) chain-linking method that uses previous years' prices to calculate real GDP. In the following, for i{1,2} and t{1,2,3,4}, let qi,t denote the quantity produced of product i in year t and pi,t the price of product i in year t. The (weighted) chain- linking method consists of the following steps: - For some reference year t{1,,4} compute Yt=YNOM,t. - If t<4, for t=t+1,,4 : - Compute the weighted annual growth rate of real GDP: gY,tw=i=12(YNOM,tpi,tqi,tqi,t1qi,tqi,t1). - Compute the weighted real GDP: Yt=(1+gY,tw)Yt1. - If t>1, for t=t1,,1 : - Compute the weighted annual growth rate of real GDP: gY,t+1w=i=12(YNOM,t+1pi,t+1qi,t+1qi,tqi,t+1qi,t). - Compute the weighted real GDP: Yt=1+gY,t+1wYt+1 Use the (weighted) chain-linking method to calculate real GDP for years 1,2,3,4 using years 1 and 4 as reference years, respectively. Recalculate the GDP deflator for years 1,2,3,4 and both the annual real GDP growth rates and inflation rates for years 2,3,4 for both reference years. Compare your results with your results from (b) and (c) and explain your findings. Report all calculated values rounded to four decimal places..

1. I do not know what you want, but here is all I have about this question. This exercise addresses
some issues related to calculating real GDP. Consider a model economy with only two goods.
The following table shows the prices and quantities of goods produced: (a) Compute nominal
GDP YNOM,t for t=1,2,3,4. (b) Compute real GDP Yt for t=1,2,3,4 using year 1 as base year
(fixed base year method), i. e., using the prices in year 1. Furthermore, compute the GDP deflator
Pt=YtYNOM,t for t=1,2,3,4 and both the annual real GDP growth rates gY,t=Yt1YtYt1 and the
inflation rates t=Pt1PtPt1 for t=2,3,4. Report Pt,gY,t and t rounded to four decimal places. (c)
Repeat (b) using year 4 as base year. What do you observe?
1) Many countries use the (weighted) chain-linking method that uses previous years' prices to
calculate real GDP. In the following, for i{1,2} and t{1,2,3,4}, let qi,t denote the quantity
produced of product i in year t and pi,t the price of product i in year t. The (weighted) chain-
linking method consists of the following steps: - For some reference year t{1,,4} compute
Yt=YNOM,t. - If t<4, for t=t+1,,4 : - Compute the weighted annual growth rate of real GDP:
gY,tw=i=12(YNOM,tpi,tqi,tqi,t1qi,tqi,t1). - Compute the weighted real GDP: Yt=(1+gY,tw)Yt1.
- If t>1, for t=t1,,1 : - Compute the weighted annual growth rate of real GDP:
gY,t+1w=i=12(YNOM,t+1pi,t+1qi,t+1qi,tqi,t+1qi,t). - Compute the weighted real GDP:
Yt=1+gY,t+1wYt+1
Use the (weighted) chain-linking method to calculate real GDP for years 1,2,3,4 using years 1
and 4 as reference years, respectively. Recalculate the GDP deflator for years 1,2,3,4 and both
the annual real GDP growth rates and inflation rates for years 2,3,4 for both reference years.
Compare your results with your results from (b) and (c) and explain your findings. Report all
calculated values rounded to four decimal places.