Table 1 contains price and quantity information for two products produced by Apple, the iPhone and Apple Watch for 2016 and 2017. Let’s assume that they were produced in the United States. Table 1: Apple Products 2016 2017 Price Quantity Price Quantity iPhone $1,200 300 $1,250 400 Apple Watch $500 800 $650 850 Calculate the amount contributed by Apple to nominal U.S. GDP from the sales of the two products in 2016 and 2017. Calculate the amount contributed by Apple to real U.S. GDP from the sales of the two products in 2016 and 2017. Determine the growth rate of nominal
Table 1 contains
the iPhone and Apple Watch for 2016 and 2017. Let’s assume that they were produced
in the United States.
Table 1: Apple Products
2016 2017
Price Quantity Price Quantity
iPhone $1,200 300 $1,250 400
Apple Watch $500 800 $650 850
Calculate the amount contributed by Apple to nominal U.S.
of the two products in 2016 and 2017.
Calculate the amount contributed by Apple to real U.S. GDP from the sales of
the two products in 2016 and 2017.
Determine the growth rate of nominal GDP (if Apple were the entire economy).
Determine the growth rate of real GDP (if Apple were the entire economy).
Use the shortcut you learned to convert between real and nominal growth rates
to determine the growth rate of prices.
Is the increase in nominal GDP due to a change in quantity, a change in prices,
or both?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
