An economy produces only food and fun. The table shows the quantities produced and prices in 2018 and 2019.If the base year is 2018, compare the growth rates of nominal GDP and real GDP in 2019.Question Help>>> Answer to 1 decimal place.>>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign.In 2018ItemQuantityPriceThe growth rate of nominal GDP in 2019 is percent.Food97$2Fun51$2In 2019ItemQuantityPriceFood71$4Fun67$10Enter your answer in the answer box and then click Check Answer.Check AnswerClear All1 partremainingMacBook AirDDDIIF11F10F9F8F780F6F5F4F3F2escF1&@78.!452{1PYET%24# 3

Answered: An economy produces only food and fun.…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

An economy produces only food and fun. The table shows the quantities produced and prices in 2018 and 2019.
If the base year is 2018, compare the growth rates of nominal GDP and real GDP in 2019.
Question Help
>>> Answer to 1 decimal place.
>>> If your answer is negative, include a minus sign. If your answer is positive, do not include a plus sign.
In 2018
Item
Quantity
Price
The growth rate of nominal GDP in 2019 is percent.
Food
97
$2
Fun
51
$2
In 2019
Item
Quantity
Price
Food
71
$4
Fun
67
$10
Enter your answer in the answer box and then click Check Answer.
Check Answer
Clear All
1 part
remaining
MacBook Air
DD
DII
F11
F10
F9
F8
F7
80
F6
F5
F4
F3
F2
esc
F1
&
@
7
8.
!
4
5
2
{
1
P
Y
E
T
%24
# 3

Expert Solution

Step 1

$Nominal GDP of 2018 : Nominal GDP of 2018 = (Current year price x Current year quantity) Nominal GDP of 2018 = 97 \times 2 + 51 \times 2 Nominal GDP of 2018 = 296 Real GDP of 2018 : Real GDP of 2018 = (Current year quantity \times base year price) Real GDP of 2018 = 97 \times 2 + 51 \times 2 Real GDP of 2018 = 296$

$Nominal GDP of 2019 : Nominal GDP of 2019 = (Current year price x Current year quantity) Nominal GDP of 2019 = 4 \times 71 + 10 \times 67 Nominal GDP of 2019 = 954 Real GDP of 2019 : Real GDP of 2019 = (Current year quantity \times base year price) Real GDP of 2019 = 71 \times 2 + 67 \times 2 Real GDP of 2019 = 276$

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions