In year 1 and year 2, there are two products produced in a given economy: computers and bread. Suppose that there are no intermediate goods. In year 1, 80 computers are produced and sold at $1000 each, and in year 2, 124 computers are produced and sold at $1700 each. In year 1, 20,000 loaves of bread are sold for $1 each, and in year 2, 29,000 loaves of bread are sold for $1.40 each. a. Nominal GDP in year 1 is $ 100000 , and nominal GDP in year 2 is $ 251400 . (Round your responses to the nearest integer as needed.) b. Calculate real GDP in each year and the percentage increase in real GDP from year 1 to year 2 by using year 1 as the base year. Next, do the same calculations by using the chain-weighting method. Using year 1 as the base year, real GDP in year 1 is $ real GDP in year 2 is $ , and the percentage increase in real GDP from year 1 to year 2 is %. (Round responses for real GDP to the nearest integer as needed, and round your response for the percentage increase to three decimal places as needed.)

In year 1 and year 2, there are two products produced in a given economy: computers and bread. Suppose that there are no intermediate goods. In year 1, 80 computers are produced and sold at $1000 each, and in year 2, 124 computers are produced and sold at $1700 each. In year 1, 20,000 loaves of bread are sold for $1 each, and in year 2, 29,000 loaves of bread are sold for $1.40 each. a. Nominal GDP in year 1 is $ 100000 , and nominal GDP in year 2 is $ 251400 . (Round your responses to the nearest integer as needed.) b. Calculate real GDP in each year and the percentage increase in real GDP from year 1 to year 2 by using year 1 as the base year. Next, do the same calculations by using the chain-weighting method. Using year 1 as the base year, real GDP in year 1 is $ real GDP in year 2 is $ , and the percentage increase in real GDP from year 1 to year 2 is %. (Round responses for real GDP to the nearest integer as needed, and round your response for the percentage increase to three decimal places as needed.)

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp

Section: Chapter Questions

Problem 9WNG

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