Nominal GDP for 2000= 100 *1 +50 *1 = 150 2001=200*2 +100*1.50= 550 2002=300*3 +150*3 = 1350 Real GDP for 2001=100 *1 +50 *1 = 150 2001=200 *1 +100 *1 = 300 2002=300 *1 +150 *1 = 450 a) Assume now in 2001 half of the Hummus consumed is imported. How does that change the nominal GDP? (b) Assume now in 2001, 100 units of the 200 units of Hummus produced is exported. How does that change the nominal GDP?
Nominal GDP for 2000= 100 *1 +50 *1 = 150 2001=200*2 +100*1.50= 550 2002=300*3 +150*3 = 1350 Real GDP for 2001=100 *1 +50 *1 = 150 2001=200 *1 +100 *1 = 300 2002=300 *1 +150 *1 = 450 a) Assume now in 2001 half of the Hummus consumed is imported. How does that change the nominal GDP? (b) Assume now in 2001, 100 units of the 200 units of Hummus produced is exported. How does that change the nominal GDP?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Nominal GDP for
2000= 100 *1 +50 *1 = 150
2001=200*2 +100*1.50= 550
2002=300*3 +150*3 = 1350
Real GDP for
2001=100 *1 +50 *1 = 150
2001=200 *1 +100 *1 = 300
2002=300 *1 +150 *1 = 450
a) Assume now in 2001 half of the Hummus consumed is imported. How does that change the nominal GDP?
(b) Assume now in 2001, 100 units of the 200 units of Hummus produced is exported. How does that change the nominal GDP?
![1. Consider an economy producing only Hummus and Falafel, all of which is
domestically consumed, if not st ated otherwise. There are no invest ments
and no government spendings. The following table contain s the produ ction
levels and prices for the years 2000-2002.
Year Hummus Price
Fal afel Price
$1
$1,50
$2
50
$1
$2
$3
2000
100
2001
200
100
2002
300
150](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6037d279-25a5-4099-b5ec-b58fd345d0a2%2F12f89654-447c-4642-9fe8-b6995cddc953%2Fnf9msqr_processed.png&w=3840&q=75)
Transcribed Image Text:1. Consider an economy producing only Hummus and Falafel, all of which is
domestically consumed, if not st ated otherwise. There are no invest ments
and no government spendings. The following table contain s the produ ction
levels and prices for the years 2000-2002.
Year Hummus Price
Fal afel Price
$1
$1,50
$2
50
$1
$2
$3
2000
100
2001
200
100
2002
300
150
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