Table 1 provides hypothetical price and quantities of economic transactions in a country for 2009 and 2010. Year 2009=100 suggests 2009 is the base year. Carefully review the information in the table and the assumptions below. Then solve the problems below. Please show all calculations.  

 

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Table 1: Price and quantities of items produced in 2009 and 2010 (Year 2009=100) Items Computers DVD drives Milk Price in 2009 $500 $50 $3 $10 Quantity in 2009 100 50 130 liters Pizza Assumptions: • The year 2009 (Year 2009-100) is the base year. • All items in the table are domestically produced. • All milk and DVDs are for personal consumption. 20 Price in 2010 $450 $45 $3.25 $12 Problems: 1. Refer to table 1. Calculate the nominal GDP for 2010. 2. Refer to table 1. Calculate real GDP for 2010. 3. Calculate the nominal GDP for 2009. 4. Refer to table 1. Calculate real GDP for 2009. Quantity in 2010 115 60 150 liters 24 Table 1: Price and quantities of items produced in 2009 and 2010 (Year 2009=100) Items Computers DVD drives Milk Price in 2009 $500 $50 $3 $10 Quantity in 2009 100 50 130 liters Pizza Assumptions: • The year 2009 (Year 2009-100) is the base year. • All items in the table are domestically produced. • All milk and DVDs are for personal consumption. 20 Price in 2010 $450 $45 $3.25 $12 Problems: 1. Refer to table 1. Calculate the nominal GDP for 2010. 2. Refer to table 1. Calculate real GDP for 2010. 3. Calculate the nominal GDP for 2009. 4. Refer to table 1. Calculate real GDP for 2009. Quantity in 2010 115 60 150 liters 24

Answer rating: 100% (QA)

To solve the problems well use the formula for calculating nominal GDP Nominal GDP Price Quantity To ... View the full answer