The economy of Britannica produces three goods:

computers, DVDs, and pizza. The accompanying table shows the prices and output of the three goods for the years 2012, 2013, and 2014.

a. What is the percent change in production of each of the goods from 2012 to 2013 and from 2013 to 2014?

b. What is the percent change in prices of each of the goods from 2012 to 2013 and from 2013 to 2014?

c. Calculate nominal GDP in Britannica for each of the three years. What is the percent change in nominal GDP from 2012 to 2013 and from 2013 to 2014?

d. Calculate real GDP in Britannica using 2012 prices for each of the three years. What is the percent change in real GDP from 2012 to 2013 and from 2013 to 2014?

Transcribed Image Text:

Computers Year Price Quantity 2012 $900 10 2013 1,000 10.5 2014 1,050 12 DVDs Price Quantity $10 100 12 105 14 110 Pizzas Price Quantity $15 2 16 2 17 3