a) Nominal GDP in any year is calculated by multiplying the quantity of each final product sold by its price and summing over all final goods and services. Assuming that all computers and automobiles are final goods, calculate nominal GDP in 1990 and in 2000. 1990 2000 Year No. of Computers Sold 500,000 5,000,000 Price per Computer $6000 $2000 No. of Automobiles Sold 1,000,000 1,500,000 Price per Automobile $12,000 $20,000

a) Nominal GDP in any year is calculated by multiplying the quantity of each final product sold by its price and summing over all final goods and services. Assuming that all computers and automobiles are final goods, calculate nominal GDP in 1990 and in 2000. 1990 2000 Year No. of Computers Sold 500,000 5,000,000 Price per Computer $6000 $2000 No. of Automobiles Sold 1,000,000 1,500,000 Price per Automobile $12,000 $20,000

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter19: Measuring Economic Performance

Section: Chapter Questions

Problem 1P

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