The following table shows prices and quantities in the hypothetical economy of Lowlands for two different items in two different years. Assume these are the only two items produced in this economy. Prices and Output in a Two-Item Economy Good Apples Shirts Price $1.30 12.20 Year 1 Output 520 110 Price $1.60 14.20 Year 2 Instructions: Enter your answers as a whole number. a. What is the value of nominal GDP for Lowlands in year 1? b. What is the value of nominal GDP for Lowlands in year 2? Output 580 130 c. Assume year 1 is used as the base year for this economy. What is the value of real GDP in year 2? d. In Lowlands, if nominal GDP were used instead of real GDP, the value of output in year 2 would be (Click to select)

The following table shows prices and quantities in the hypothetical economy of Lowlands for two different items in two different years. Assume these are the only two items produced in this economy. Prices and Output in a Two-Item Economy Good Apples Shirts Price $1.30 12.20 Year 1 Output 520 110 Price $1.60 14.20 Year 2 Instructions: Enter your answers as a whole number. a. What is the value of nominal GDP for Lowlands in year 1? b. What is the value of nominal GDP for Lowlands in year 2? Output 580 130 c. Assume year 1 is used as the base year for this economy. What is the value of real GDP in year 2? d. In Lowlands, if nominal GDP were used instead of real GDP, the value of output in year 2 would be (Click to select)

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp

Section: Chapter Questions

Problem 9WNG

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