(b) Consider an economy with two goods i.e. good A and Good B. Prices andQuantities for different years are given in the following table. Calculate thenominal and real GDP for each of the years (hint: to calculate real GDP use2007 as the base years). 2006Pricegood ABDT 30good B BDT 100Quantity9001922007PriceBDT 31BDT 1022008Price1,000 BDT 36200BDT 100QuantityQuantity1,050205

Nominal GDP measures the market value of goods and services using current prices whereas Real GDP…

Answered: 2006 Price good A BDT 30 good B BDT 100…

2006 Price good A BDT 30 good B BDT 100 Quantity 900 192 2007 Price BDT 31 BDT 102 2008 Price 1,000 BDT 36 200 BDT 100 Quantity Quantity 1,050 205

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

100%

(b) Consider an economy with two goods i.e. good A and Good B. Prices and
Quantities for different years are given in the following table. Calculate the
nominal and real GDP for each of the years (hint: to calculate real GDP use
2007 as the base years).

2006
Price
good A
BDT 30
good B BDT 100
Quantity
900
192
2007
Price
BDT 31
BDT 102
2008
Price
1,000 BDT 36
200
BDT 100
Quantity
Quantity
1,050
205

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