Assume that this economy produces only two goods, Good X and Good Y.

1a. The value for this economy’s NGDP in year 1 is ______. NGDP = Nominal GDP

1b. The value for this economy’s NGDP in year 3 is ______.

1c. If year 1 is the base year, the value for this economy’s RGDP in year 2 is _____. RGDP = Real GDP

1d. If year 1 is the base year, the value for this economy’s GDPD in year 1 is____. GDPD = GDP Deflator

1e. If year 1 is the base year, the value for this economy’s GDPD in year 1 is _____.

1f. If year 1 is the base year, the value for this economy’s GDPD in year 2 is ______.
 

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Use the information in the following table to answer the questions. Production Year 2 75 100 Good X Good Y Year 1 50 100 Year 3 100 130 Year 1 $1.00 $0.60 Prices Year 2 $1.00 $0.75 Year 3 $1.20 $1.00 Use the information in the following table to answer the questions. Production Year 2 75 100 Good X Good Y Year 1 50 100 Year 3 100 130 Year 1 $1.00 $0.60 Prices Year 2 $1.00 $0.75 Year 3 $1.20 $1.00

Answer rating: 100% (QA)

1 Nominal GDP in year 1 price in current year X quantity in current year501100065060... View the full answer