During 2020, Nation Z produced only 10 goods. Goods A, B C, D and E are intermediate goods. Goods F, G, H, I and I are final goods. The intermediate goods (A, B, C, D and E) are used in the production of the final goods (F, G, H, I and J). The quantities produced and sold of each good in 2019 are as follows: QA= 50 units; Q8= 40 units; Qc= 60 units; Qu= 70 units; Qe= 30 units; Q:= 40 units; QG= 60 units; Qu= 50 units; Q = 30 units; Q = 70 units. The 2019 market prices of each good are as follows: PA= 200; Ps= 300; Pe= 600; P = 50; Pe= 40; P= 300; Pg= 200; P = 50; P = 40€; P;= 300. Based on the above information, determine the value of nominal GDP for 2020.
During 2020, Nation Z produced only 10 goods. Goods A, B C, D and E are intermediate goods. Goods F, G, H, I and I are final goods. The intermediate goods (A, B, C, D and E) are used in the production of the final goods (F, G, H, I and J). The quantities produced and sold of each good in 2019 are as follows: QA= 50 units; Q8= 40 units; Qc= 60 units; Qu= 70 units; Qe= 30 units; Q:= 40 units; QG= 60 units; Qu= 50 units; Q = 30 units; Q = 70 units. The 2019 market prices of each good are as follows: PA= 200; Ps= 300; Pe= 600; P = 50; Pe= 40; P= 300; Pg= 200; P = 50; P = 40€; P;= 300. Based on the above information, determine the value of nominal GDP for 2020.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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During 2020, Nation Z produced only 10 goods. Goods A, B C, D and E are intermediate goods. Goods F, G, H, I and I are final goods. The intermediate goods (A, B, C, D and E) are used in the production of the final goods (F, G, H, I and J). The quantities produced and sold of each good in 2019 are as follows: QA= 50 units; Q8= 40 units; Qc= 60 units; Qu= 70 units; Qe= 30 units; Q:= 40 units; QG= 60 units; Qu= 50 units; Q = 30 units; Q = 70 units. The 2019 market prices of each good are as follows: PA= 200; Ps= 300; Pe= 600; P = 50; Pe= 40; P= 300; Pg= 200; P = 50; P = 40€; P;= 300. Based on the above information, determine the value of nominal GDP for 2020. Thoroughly explain your answer.
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