An economy produces three goods: cars, computers, and oranges. Quantities and prices per unit for years 2009

Question:

An economy produces three goods: cars, computers, and oranges. Quantities and prices per unit for years 2009 and 2010 are as follows:

image text in transcribed

a. What is nominal GDP in 2009 and in 2010? By what percentage does nominal GDP change from 2009 to 2010?

b. Using the prices for 2009 as the set of common prices, what is real GDP in 2009 and in 2009? By what percentage does real GDP change from 2009 to 2010?

c. Using the prices for 2010 as the set of common prices, what is real GDP in 2009 and in 2010? By what percentage does real GDP change from 2009 to 2010?

d. Why are the two output growth rates constructed in (b) and (c) different? Which one is correct? Explain your answer.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Macroeconomics

ISBN: 9780133780581

7th Edition

Authors: Olivier Jean Blanchard

Question Posted: