of Grossmania produces three goods: Widgets, Gizmos, and Thingamajigs. The the output and prices for years 2006 and 2007. (Hint: GDP, in its most basic form, is P x Q. You output and multiply by the price of output.) Widgets Gizmos Year 2006 2007 Price $100 $110 Quantity Price $10 $12 1 1 Thingamajigs Quantity Price $5 $4 8 10 Quantity 4 5 8. Compute the percentage of growth in nominal GDP from 2006 to 2007.

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Answer Question 8
The economy of Grossmania produces three goods: Widgets, Gizmos, and Thingamajigs. The accompanying table shows the output and prices for the years 2006 and 2007. *(Hint: GDP, in its most basic form, is P x Q. You take the quantity of output and multiply by the price of output.)*

|          | Widgets          | Gizmos         | Thingamajigs    |
|----------|-----------------|----------------|-----------------|
| **Year** | **Price** | **Quantity** | **Price** | **Quantity** | **Price** | **Quantity** |
| 2006     | $100            | 1                   | $10            | 8                   | $5              | 4                   |
| 2007     | $110            | 1                   | $12            | 10                 | $4              | 5                   |

**Problem 8:** Compute the percentage of growth in nominal GDP from 2006 to 2007.
Transcribed Image Text:The economy of Grossmania produces three goods: Widgets, Gizmos, and Thingamajigs. The accompanying table shows the output and prices for the years 2006 and 2007. *(Hint: GDP, in its most basic form, is P x Q. You take the quantity of output and multiply by the price of output.)* | | Widgets | Gizmos | Thingamajigs | |----------|-----------------|----------------|-----------------| | **Year** | **Price** | **Quantity** | **Price** | **Quantity** | **Price** | **Quantity** | | 2006 | $100 | 1 | $10 | 8 | $5 | 4 | | 2007 | $110 | 1 | $12 | 10 | $4 | 5 | **Problem 8:** Compute the percentage of growth in nominal GDP from 2006 to 2007.
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