) ngcengage.corn/static/nb 13309654658parentld ui/nde., MINDTAP Homework (Ch 23)

Question

) ngcengage.corn/static/nb 13309654658parentld ui/nde., MINDTAP Homework (Ch 23) e Due Today at 11 59 PM CST 5. Real versas nominal GDP Consider a simple economy that produces two goods: pens and oranges. The following table shows the prices and quantities of the goods over a three-year period. Price Quantity Price Quantity Year 2012 2013 2014 (Dolars per pen) (Number of peTs) (Doflers per orange) CNumber of oranges) 195 225 165 145 165 Use the information from the preceding table to fW in the folewing table. Nominal GDP Real GDP Year (Dollars) (Base year 2012, dollas) GOP Deflator 2012 2013 2014 From 2013 to 2014, rominal GDP and real GDP the alaton rate in 2014 was

Explanation / Answer

from 2013 to 2014 nominal gdp was 1230 real gdp was 390

the inflation rate in 2014 was (360-315.38)/315.38 = .14=14%

Year Nominal GDP(Dollars) Real GDP (Base Year 2012, dollars) GDP Deflator 2012 535 (1 * 145 + 2 * 195) 340 (1 * 145 + 1 * 195) 157 % (535 / 340) * 100 2013 1230 (2 * 165 + 4 * 225) 390 (1 * 165 + 1 * 225) 315.38 % (1230 / 390) * 100 2014 990 (3 * 110 + 4 * 165) 275 (1 * 110 + 1 * 165) 360 % (990 / 275) * 100

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