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Discuss the reason(s) behind dividing the project into three phases ( why not all of the in one phase) ?

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1. Discuss the reason(s) behind dividing the project into three phases ( why not all of the in one phase) ?

2. . LO 3 In year 1 and year 2, there are two prod- ucts produced in a given economy, smartphones and earphones. Suppose that there are no inter- mediate goods. In year 1, 4,000 smartphones
   and 2,000 earphones are produced and sold at $2,000 and $200 each, respectively. However, due to an earthquake in year 2, some production lines are destroyed and the production of smart- phones and earphones falls to 1,000 and 1,500 units, respectively. However, the price of each pair of smartphone doubled and the price of each pair of earphones increased to $300. (a) Calculate nominal GDP for year 1 and year 2. (b) Calculate real GDP in each year and the percentage change in real GDP from year 1 to year 2 using year 1 as the base year. Next, do the same calculations using the chain- weighting method (c) Calculate the implicit GDP price deflator and the percentage inflation rate from year 1 to year 2 using year 1 as the base year. Next, do the same calculations using the chain- weighting method. (d) Suppose that the design and quality of smart- phones improved significantly in year 2. For example, the battery life of smartphones in year 2 was twice as long in year 1. Discuss