a) Nominal GDP in any year is calculated by multiplying the quantity of each final product sold by its price and summing over all final goods and services. Assuming that all computers and automobiles are final goods, calculate nominal GDP in 1990 and in 2000. 1990 2000 Year No. of Computers Sold 500,000 5,000,000 Price per Computer $6000 $2000 No. of Automobiles Sold 1,000,000 1,500,000 Price per Automobile $12,000 $20,000

a) Nominal GDP in any year is calculated by multiplying the quantity of each final product sold by its price and summing over all final goods and services. Assuming that all computers and automobiles are final goods, calculate nominal GDP in 1990 and in 2000. 1990 2000 Year No. of Computers Sold 500,000 5,000,000 Price per Computer $6000 $2000 No. of Automobiles Sold 1,000,000 1,500,000 Price per Automobile $12,000 $20,000

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

a) Nominal GDP in any year is calculated by multiplying the quantity of each final product sold by
its price and summing over all final goods and services. Assuming that all computers and
automobiles are final goods, calculate nominal GDP in 1990 and in 2000.
1990
2000
Year
No. of
Computers Sold
500,000
5,000,000
Price per
Computer
$6000
$2000
No. of
Automobiles
Sold
1,000,000
1,500,000
Price per
Automobile
$12,000
$20,000

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