This question is worth 5 points, 2.5 point for each part. The annual output and prices of a 3-good economy are shown in the table below. Assume Year 1 is the base year. Year 1 Year 2 Quantity of Ice Cream 14 16 Price of Ice Quantity of Cream Shampoo $6 $8 What was nominal GDP in year 1? $ What was real GDP in year 2? $ 12 3 Price of Shampoo $4 $8 4 3 Quantity of Peanut Butter $3 $5 Price of Peanut Butter
This question is worth 5 points, 2.5 point for each part. The annual output and prices of a 3-good economy are shown in the table below. Assume Year 1 is the base year. Year 1 Year 2 Quantity of Ice Cream 14 16 Price of Ice Quantity of Cream Shampoo $6 $8 What was nominal GDP in year 1? $ What was real GDP in year 2? $ 12 3 Price of Shampoo $4 $8 4 3 Quantity of Peanut Butter $3 $5 Price of Peanut Butter
Chapter19: Measuring Economic Performance
Section: Chapter Questions
Problem 7P
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