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.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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To answer Questions #1 through #4 use the following information: Suppose that in the nation state of Raleighville there are 2 final goods produced in the economy - dog food and kitten chow. Suppose the economy produces 15 units of dog food and 5 units of kitten chow in 2000 (the base year), and 20 units of dog food and 10 units of kitten chow in 2020. Further suppose the price of dog food was $1.00 per unit in 2000, and $3.00 per unit in 2020; whereas the price of kitten chow was $1.00 in 2000 and $2.50 in 2020. What was the real GDP for Raleighville in 2020? Oa. $20.00 O b. $30.00 Oc. $57.50 Od. $85.00 Next page page
To answer Questions #1 through #4 use the following information: Suppose that in the nation state of Raleighville there are 2 final goods produced in the economy - dog food and kitten chow. Suppose the economy produces 15 units of dog food and 5 units of kitten chow in 2000 (the base year), and 20 units of dog food and 10 units of kitten chow in 2020. Further suppose the price of dog food was $1.00 per unit in 2000, and $3.00 per unit in 2020; whereas the price of kitten chow was $1.00 in 2000 and $2.50 in 2020. What was the real GDP for Raleighville in 2000? O a. $20.00 O b. $30.00 O c. $57.50 O d. $85.00 Next page
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