Suppose the following data describe output in two different years:
(a) Compute nominal GDP in each year.
(b) By what percentage did nominal GDP increase between Year 1 and Year 2?
(c) Now compute real GDP in Year 2 by using the prices of Year 1.
(d) By what percentage did real GDP increase between Year 1 and Year 2?

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Year 1 20,000 @ 25¢ each Item Year 2 30,000 @ 30¢ each 650 @ $900 each 12,000 @ $1.50 each Apples Bicycles 700 @ $800 each 10,000 @ $1.00 each Movie rentals