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2 n. John buying a pack of beer and two frozen pizzas in Costco (American wholesaler) in Toronto, Canada Included Excluded 2) Refer to the table below . For all of the questions below , show your calculations and the unit of account of your answers . 2011 2013 Product Quantity Price, $ Quantity Price, $ Hats 200 20 250 21 French fries 2,000 1 2,300 2 Digital cameras 40 200 50 140 a. Calculate nominal 2013 GDP Answer : (4 points) Nominal GDP= Sum of current year price * Current Year Quantity of all the goods ($21*250) +($2*2300) +($140*50)= $5250+ $4600 + $7000= $16850 b. Calculate real 2013 GDP Answer : (4 points) Real GDP= Sum of the base year price * Current year quantity of all the goods ($20*250) + ($1+ 2300) + ($200*50)= $5000 +$2300 +$10000= $17300 3) Consider a U.S.-based company Ford that is assembling its small cars in Mexico, using Mexican labor, and then exports them back to the U.S. The production of these cars will count (if at all) towards____________ ( circle all that applies ): Answer : (4 points) U.S. GDP U.S. GNP Mexican GDP Mexican GNP None of the above 4) The picture below shows an economy’s business cycle . a) Label both axes. (2 points) b) Find a point at which economy’s real GDP is the largest and label it A . (1 points) c) Find a point at which economy’s real GDP is the smallest and label it B .