amount produced and sold in each of four consecutive years, which is shown in th

Question

amount produced and sold in each of four consecutive years, which is shown in the table below: 2. Consider a very limited economy with only six goods being produced. We record the Year 1 Year 2 Year 3 Year 4 Chicken (Ibs) $1.25 100 $1.33 110 51.30 125 51.42120 Time mag. Elec. (KWH) $ Cereal (boxes) 3.00 55 $3.255S Gloves (pr.) $42.00 6$45.00 Candy bar $1.00 20 1.00 25 18 1.25 20 S0.06 1200 $0.06 1350 $0.07 1360 0.08 1355 $3.25 57 $3.50 $47.00| 7-1 $49.00 $1.00 210 $1.05 215 51.10 225 1.10 245 Using this information, calculate the nominal GDP in each year, the annual growth in nominal GDP from year to year (i.e., from year 1 to 2, from year 2 to 3, etc.) and the aggregate amount of growth from year 1 to each of the other three years. Year 1 Year 2 Year 3 Year 4 Nominal GDP annual growth aggregate growth Now, convert these values into real GDP terms, using the prices of Year 1 for all the subsequent years. Repeat the exercise above and calculate the annual growth in real GDP and the aggregate growth in real GDP from Year 1. Year 2 Year 3 Year 4 Year 1 Real GDP annual growth aggregate growth

Explanation / Answer

Here iz working for nominal GDP,

year 1 year 2 year3 year 4 125 146.3 162.5 170.4 20 22 22.5 25 72 81 95.2 108.4 165 55 185.25 192.5 252 270 329 343 210 225.75 247.5 269.5 844 800.05 1041.95 1108.8

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