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# nominal GDP

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Number 1.

Year Price of
Good 1 Quantity of
Good 1 Price of
Good 2 Quantity of
Good 2
2006 \$2 5 \$4 10
2007 \$4 10 \$8 5

The table above shows the prices and quantities of two goods produced in a country in 2006 and 2007. These are the only goods produced in the country. What is the nominal GDP in 2007?

a. \$40
b. \$80
c. \$100
d. \$200

Number 2. Consider the data in Question 1 above. What is the real GDP in 2007 (base year = 2006)?

a. \$40
b. \$80
c. \$100
d. \$200

Number 3.

Consider the data in Question 1 above. What is the GDP deflator in 2007 (base year = 2006)?

a. \$40
b. \$80
c. \$100
d. \$200

https://brainmass.com/economics/macroeconomics/nominal-gdp-384003

#### Solution Preview

What is the nominal GDP in 2007?

It's \$80 b

Number 2. Consider the data in Question 1 above. What is the real GDP in ...

#### Solution Summary

This solution clearly assesses nominal GDP.

\$2.19