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Consider the following information about a simple country that produces two different goods: Year Price Quantity Price Quantity Milk Milk Cereal Cereal 2014 $4 200 $5 300 2015 $4.25 250 $5.50 330 2016 $4.50 300 $6.00 350 Assume the base year is 2014. If we were to calculate nominal GDP and real GDP for 2015 and 2016 we would find: real GDP is larger than nominal GDP in 2015 and nominal GDP is larger than real GDP in 2016. nominal GDP for each of these years is larger than real GDP. real GDP is larger than nominal GDP in 2016 and nominal GDP is larger than real GDP in 2015. real GDP for each of these years is larger than nominal GDP.

Consider the following information about a simple country that produces two different goods: Year Price Quantity Price Quantity Milk Milk Cereal Cereal 2014 $4 200 $5 300 2015 $4.25 250 $5.50 330 2016 $4.50 300 $6.00 350 Assume the base year is 2014. If we were to calculate nominal GDP and real GDP for 2015 and 2016 we would find: real GDP is larger than nominal GDP in 2015 and nominal GDP is larger than real GDP in 2016. nominal GDP for each of these years is larger than real GDP. real GDP is larger than nominal GDP in 2016 and nominal GDP is larger than real GDP in 2015. real GDP for each of these years is larger than nominal GDP.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider the following information about a simple country that produces two different goods: Price Quantity Price Quantity Year Milk Milk Cereal Cereal 2014 $4 200 $5 300 2015 $4.25 250 $5.50 330 2016 $4.50 300 $6.00 350 Assume the base year is 2014. If we were to calculate nominal GDP and real GDP for 2015 and 2016 we would find: real GDP is larger than nominal GDP in 2015 and nominal GDP is larger than real GDP in 2016. nominal GDP for each of these years is larger than real GDP. real GDP is larger than nominal GDP in 2016 and nominal GDP is larger than real GDP in 2015. real GDP for each of these years is larger than nominal GDP. O
Transcribed Image Text:Consider the following information about a simple country that produces two different goods: Price Quantity Price Quantity Year Milk Milk Cereal Cereal 2014 $4 200 $5 300 2015 $4.25 250 $5.50 330 2016 $4.50 300 $6.00 350 Assume the base year is 2014. If we were to calculate nominal GDP and real GDP for 2015 and 2016 we would find: real GDP is larger than nominal GDP in 2015 and nominal GDP is larger than real GDP in 2016. nominal GDP for each of these years is larger than real GDP. real GDP is larger than nominal GDP in 2016 and nominal GDP is larger than real GDP in 2015. real GDP for each of these years is larger than nominal GDP. O
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