Consider an economy that produces bread and cars. In the table 2.1 below are data for the different years: Table 2.1 Year 2008 Year 2018 Price of a loaf of bread $10 $20 Number of loaves of bread 500,000 400,000 Price of a car $50,000 $60,000 Number of cars produced 100 120 Using the year 2008 as the base year, compute the following for each year: i. Nominal GDP ii. Real GDP iii How much have prices risen between year 2008 and 2018?
Consider an economy that produces bread and cars. In the table 2.1 below are data for the different years: Table 2.1 Year 2008 Year 2018 Price of a loaf of bread $10 $20 Number of loaves of bread 500,000 400,000 Price of a car $50,000 $60,000 Number of cars produced 100 120 Using the year 2008 as the base year, compute the following for each year: i. Nominal GDP ii. Real GDP iii How much have prices risen between year 2008 and 2018?
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp
Section: Chapter Questions
Problem 2QP
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Question
- Consider an economy that produces bread and cars. In the table 2.1 below are data for the different years:
|
Table 2.1 |
|
|
|
|
Year 2008 |
Year 2018 |
|
|
$10 |
$20 |
|
Number of loaves of bread |
500,000 |
400,000 |
|
Price of a car |
$50,000 |
$60,000 |
|
Number of cars produced |
100 |
120 |
|
|
Using the year 2008 as the base year, compute the following for each year: |
|
|
i. |
Nominal |
|
|
ii. |
Real GDP |
|
| iii | How much have prices risen between year 2008 and 2018? |
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