a. What is nominal GDP in 2020 and in 2021? b. Using 2020 as the base year, what is real GDP in 2020 and in 2021? c. What is the percentage increase in real GDP from 2020 to 2021? d. Repeat b. using 2021 as the base year. e. Does the growth rate for real GDP depend on which year is chosen as the base year?
a. What is nominal GDP in 2020 and in 2021? b. Using 2020 as the base year, what is real GDP in 2020 and in 2021? c. What is the percentage increase in real GDP from 2020 to 2021? d. Repeat b. using 2021 as the base year. e. Does the growth rate for real GDP depend on which year is chosen as the base year?
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter15: Measuring A Nation's Income
Section: Chapter Questions
Problem 6PA
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Question
![5. An economy produces three goods: laptops, Apple phones, and plums.
Production units and prices per unit for years 2020 and 2021 are as
follows:
2020
2021
Quantity Price($) | Quantity
Price($)
Laptops
Apple Phones
Plums
10
2,000
12
3,000
4
1,000
6.
500
1,000
1
1,000
1
a. What is nominal GDP in 2020 and in 2021?
b. Using 2020 as the base year, what is real GDP in 2020 and in 2021?
c. What is the percentage increase in real GDP from 2020 to 2021?
d. Repeat b. using 2021 as the base year.
e. Does the growth rate for real GDP depend on which year is chosen
as the base year?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F225717f5-cfd8-44eb-8e81-61eea9f7a25a%2Fc55a728c-d989-4796-8d88-a8fe9c81d063%2Flmclpvm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5. An economy produces three goods: laptops, Apple phones, and plums.
Production units and prices per unit for years 2020 and 2021 are as
follows:
2020
2021
Quantity Price($) | Quantity
Price($)
Laptops
Apple Phones
Plums
10
2,000
12
3,000
4
1,000
6.
500
1,000
1
1,000
1
a. What is nominal GDP in 2020 and in 2021?
b. Using 2020 as the base year, what is real GDP in 2020 and in 2021?
c. What is the percentage increase in real GDP from 2020 to 2021?
d. Repeat b. using 2021 as the base year.
e. Does the growth rate for real GDP depend on which year is chosen
as the base year?
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