The economy of Britannica produces three goods: computers, pens, and pizza. The accompanying table shows the prices and output of the three goods for the years 2014, 2015, and 2016.

a. What is the percent change in production of each of the goods from 2014 to 2015 and from 2015 to 2016?

b. What is the percent change in prices of each of the goods from 2014 to 2015 and from 2015 to 2016?

c. Calculate nominal GDP in Britannica for each of the three years. What is the percent change in nominal GDP from 2014 to 2015 and from 2015 to 2016?

d. Calculate real GDP in Britannica using 2014 prices for each of the three years. What is the percent change in real GDP from 2014 to 2015 and from 2015 to 2016?

Transcribed Image Text:

Computers Pens Pizzas Year Price Quantity Price Quantity Price Quantity $15 2014 $900 1,000 $10 12 10 100 2015 105 16 2 10.5 12 1,050 14 110 17 3 2016