Compute nominal gdp in year

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Reference no: EM132543373

Suppose the following data describe output in two different years:

Items Year 1 Year 2

Apples 20,000 @ $0.25 each 30,000 @ $0.30 each

Bicycles 700 @ $800 each 700 @ $800 each

Apps 10,000 @ $1.00 each 12,000 @ $2.00 each

a)Compute nominal GDP in each year

b)By what percentage did nominal GDP change between Year 1 and Year 2?

c) Now compute the GDP in Year 2 by using the prices of Year 1.

d) By what percentage did real GDP increase between Year 1 and Year 2?

Reference no: EM132543373

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