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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

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    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