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2. Suppose the following table records the total output and prices for an entire economy. Further, suppose the base year in t
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Answer #1

2.

Nominal GDP=phpfXXNnG.png PiQi

Nominal GDP in Year 2004=1*200+10*50

=200+500

=$700

b.

Real GDP=phpgXZmu5.png base year price* current year quantity

Real GDP of 2004=1*200+10*50

=200+500

=$700

c.

Nominal GDP=phpiGzsfw.png PiQi

Nominal GDP in Year 2005=1*220+11*50

=220+550

=$770

d.

Real GDP=phpiDGLnF.png base year price* current year quantity

Real GDP of 2005=1*220+10*50

=220+500

=$720

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