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29) The country of Old Jersey produces milk and butter, and it has published the following roeconomic data, where quantities are in gallons and prices are dollars per gallon. Year 1 Year 2 Good Quantity Price Quantity Price Milk 500 Butter 2000 $2 900 $1 3000 $3 $2 Between Year 1 and Year 2, nominal GDP grew by A) 60.0%. B) 65.5%. C) 83.3%. D) 190.096. 3 2show work

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Answer #1

Ans: D ) 190.0%

Explanation:

Nominal GDP = current year price * current year quantity

For year 1 , nominal GDP = ( $2 * 500 ) + ( $1 *2000)

= $1000 + $2000

=$3000

For year 2 , nominal GDP = ( $3 * 900 ) + ( $2 *3000)

= $2700 + $6000

=$8700

Between year 1 and year 2 , nominal GDP grew by ;

= { ( $8700 - $3000 ) / $3000 } *100

=( $5700 / $3000 ) *100

= 1.9 *100

= 190%

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Answer #2
A) 60.0% 500×2000= 8700
source: Assignment
answered by: Durga
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