01/201M Macroeconomics-Sections (21837/24444)/(27256/27258)- Fall18-KE > Activit

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01/201M Macroeconomics-Sections (21837/24444)/(27256/27258)- Fall18-KE > Activities and Due Dates > e Macroeconomy mit All Questions Completed 11 out of 18 K Expand Question 16 of 18> Suppose that, in year 1, an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each. The next year, the economy produces 110 golf balls that sell for $3.25 each and 80 pizzas that sell for $9 each. The value of nominal GDP in years 1 and 2, respectively, is: O$180,000 and $257,400. O$1,000 and $1,005. O$900 and $990. O $900 and $1,077.50. Perez Deborah Res nia-lorentz re..paf

Explanation / Answer

Nominal gdp = spending by consumers + investments + government spending

Nominal gdp =( 100 × 3) +( 75 ×8) = 900

2nd year gdp = (110 × 3.25) + (80 ×9) =1077.50

So ans. Is $900 and $ 1077.50

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