Products Average Price in 2019 Shoes 110 Computers 99 Average Price in 2020 121 148 Total production in 2019 (units) 3500 2000 Total production in 2020 (units) 3700 3000

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Problem 1QTC
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The economy of Fantasia produces only 2 goods namely Shoes and Computers. The total production
and average prices of shoes and computers are displayed in Table 2 attached.


(a) Compute the nominal GDP of Fantasia for 2019 and 2020 (hint: calculate the total value of
production in each year) 

(b) Compute the real GDP of Fantasia in 2020 using 2019 prices

Products Average
Price in
2019
Shoes 110
Computers 99
Average
Price in
2020
121
148
Total
production
in 2019
(units)
3500
2000
Total
production
in 2020
(units)
3700
3000
Transcribed Image Text:Products Average Price in 2019 Shoes 110 Computers 99 Average Price in 2020 121 148 Total production in 2019 (units) 3500 2000 Total production in 2020 (units) 3700 3000
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