Suppose an economy produces only burgers and bags of fries. In 2010, 4000 burgers are sold at $3 each and 6000 bags of fries are sold at $1.50 each. In 2008, the base year, burgers sold for $2.50 each and bags of fries sold for $2 each. a. nominal GDP is $22,000, real GDP is $21,000, and the GDP deflator is 95.45. b. nominal GDP is $22,000, real GDP is $21,000, and the GDP deflator is 104.77. c. nominal GDP is $21,000, real GDP is $22,000, and the GDP deflator is 95.45. d. nominal GDP is $21,000, real GDP is $22,000, and the GDP deflator is 104.77.

GDP is the value of final goods and services produced in the economy within a given period of time.…

Answered: Suppose an economy produces only…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose an economy produces only burgers and bags of fries. In 2010, 4000 burgers are sold at $3 each and 6000 bags of fries are sold at $1.50 each. In 2008, the base year, burgers sold for $2.50 each and bags of fries sold for $2 each.

	a.	nominal GDP is $22,000, real GDP is $21,000, and the GDP deflator is 95.45.
	b.	nominal GDP is $22,000, real GDP is $21,000, and the GDP deflator is 104.77.
	c.	nominal GDP is $21,000, real GDP is $22,000, and the GDP deflator is 95.45.
	d.	nominal GDP is $21,000, real GDP is $22,000, and the GDP deflator is 104.77.

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