Suppose there are only three goods in this closed economy that does not trade with other countries: energy drinks (Consumption), computers (Investment), and public highways (Government). Over a two-year period, the amount spent on these items have changed. Based on information in the table below, determine nominal and real GDP for this simple economy.

Transcribed Image Text:

с G 11 2015 Real GDP $ Real GDP 2014: $195 25.64% 23.08% 51.28% Real GDP 2015: - Economy Final Goods and Services Consumption $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 35 2014 40 45 2015 50 Investment $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 20 2014 25 30 35 2015 Government Check Answer $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 Imi 20 2014 25 30 35 2015 с G 11 2015 Real GDP $ Real GDP 2014: $195 25.64% 23.08% 51.28% Real GDP 2015: - Economy Final Goods and Services Consumption $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 35 2014 40 45 2015 50 Investment $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 20 2014 25 30 35 2015 Government Check Answer $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 Imi 20 2014 25 30 35 2015

Answer rating: 100% (QA)

Formula of real GDP quantity price of base year ... View the full answer