Assume the economy produces cookies and smartphones. The table below presents price (P) and quantity (Q) of both products. (round to the nearest 2 decimal points. show all work) 2019 (base) 2020 2021 Q Q P Cookies $2 700 $3 1000 $4 1100 Smartphones $900 200 $950 220 $1100 300 (a) Find nominal GDP in 2020 (b) Find nominal GDP in 2021 (c) Find real GDP in 2020 (d) Find real GDP in 2021 (e) Did the price level go up or down from 2019 to 2020? Find the inflation rate.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Assume the economy produces cookies and smartphones. The table below presents price (P) and
quantity (Q) of both products. (round to the nearest 2 decimal points. show all work)
2019 (base)
2020
2021
Q
Q
P
Cookies
$2
700
$3
1000
$4
1100
Smartphones
$900
200
$950
220
$1100
300
(a) Find nominal GDP in 2020
(b) Find nominal GDP in 2021
(c) Find real GDP in 2020
(d) Find real GDP in 2021
(e) Did the price level go up or down from 2019 to 2020? Find the inflation rate.
Transcribed Image Text:Assume the economy produces cookies and smartphones. The table below presents price (P) and quantity (Q) of both products. (round to the nearest 2 decimal points. show all work) 2019 (base) 2020 2021 Q Q P Cookies $2 700 $3 1000 $4 1100 Smartphones $900 200 $950 220 $1100 300 (a) Find nominal GDP in 2020 (b) Find nominal GDP in 2021 (c) Find real GDP in 2020 (d) Find real GDP in 2021 (e) Did the price level go up or down from 2019 to 2020? Find the inflation rate.
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