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3. What is 2011's nominal GDP? 2012 Quantity Price Total Value 4. Cars 70 $23,000 5. Computers 250 $3,500 6. What is 2012's nominal GDP? 7. Calculate the rate of growth of nominal GDP.

3. What is 2011's nominal GDP? 2012 Quantity Price Total Value 4. Cars 70 $23,000 5. Computers 250 $3,500 6. What is 2012's nominal GDP? 7. Calculate the rate of growth of nominal GDP.

Brief Principles of Macroeconomics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Measuring A Nation's Income
Section: Chapter Questions
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2011 Quantity Price Total Value 1. Cars 50 $20,000 2. Computers 200 $3,000 3. What is 2011's nominal GDP? 2012 Quantity Price Total Value 4. Cars 70 $23,000 5. Computers 250 $3,500 6. What is 2012's nominal GDP? 7. Calculate the rate of growth of nominal GDP. 8. Is this rate an accurate reflection of economic growth? Why or why not? To see true growth, we need to recalculate nominal GDP into real GDP. To do this, recalculate both GDP for both years using 2012 as your base year, 9. 2011 real GDP (using 2012's prices) 10. 2012 real GDP (using 2012's prices) 11. What is real economic growth for this nation? 12. What do you notice about real and nominal GDP in the base year? の
Transcribed Image Text:2011 Quantity Price Total Value 1. Cars 50 $20,000 2. Computers 200 $3,000 3. What is 2011's nominal GDP? 2012 Quantity Price Total Value 4. Cars 70 $23,000 5. Computers 250 $3,500 6. What is 2012's nominal GDP? 7. Calculate the rate of growth of nominal GDP. 8. Is this rate an accurate reflection of economic growth? Why or why not? To see true growth, we need to recalculate nominal GDP into real GDP. To do this, recalculate both GDP for both years using 2012 as your base year, 9. 2011 real GDP (using 2012's prices) 10. 2012 real GDP (using 2012's prices) 11. What is real economic growth for this nation? 12. What do you notice about real and nominal GDP in the base year? の
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