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In year 1 and year 2, there are two products produced in a given economy: computers and bread. Suppose that there are no intermediate goods. In year 1, 80 computers are produced and sold at $1000 each, and in year 2, 124 computers are produced and sold at $1700 each. In year 1, 20,000 loaves of bread are sold for $1 each, and in year 2, 29,000 loaves of bread are sold for $1.40 each. a. Nominal GDP in year 1 is $ 100000 , and nominal GDP in year 2 is $ 251400 . (Round your responses to the nearest integer as needed.) b. Calculate real GDP in each year and the percentage increase in real GDP from year 1 to year 2 by using year 1 as the base year. Next, do the same calculations by using the chain-weighting method. Using year 1 as the base year, real GDP in year 1 is $ real GDP in year 2 is $ , and the percentage increase in real GDP from year 1 to year 2 is %. (Round responses for real GDP to the nearest integer as needed, and round your response for the percentage increase to three decimal places as needed.)

In year 1 and year 2, there are two products produced in a given economy: computers and bread. Suppose that there are no intermediate goods. In year 1, 80 computers are produced and sold at $1000 each, and in year 2, 124 computers are produced and sold at $1700 each. In year 1, 20,000 loaves of bread are sold for $1 each, and in year 2, 29,000 loaves of bread are sold for $1.40 each. a. Nominal GDP in year 1 is $ 100000 , and nominal GDP in year 2 is $ 251400 . (Round your responses to the nearest integer as needed.) b. Calculate real GDP in each year and the percentage increase in real GDP from year 1 to year 2 by using year 1 as the base year. Next, do the same calculations by using the chain-weighting method. Using year 1 as the base year, real GDP in year 1 is $ real GDP in year 2 is $ , and the percentage increase in real GDP from year 1 to year 2 is %. (Round responses for real GDP to the nearest integer as needed, and round your response for the percentage increase to three decimal places as needed.)

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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In 1 and year 2, there are two products produced in a given economy: computers and bread. Suppose that there are no intermediate goods. In year 1, 80 year computers are produced and sold at $1000 each, and in year 2, 124 computers are produced and sold at $1700 each. In year 1, 20,000 loaves of bread are sold for $1 each, and in year 2, 29,000 loaves of bread are sold for $1.40 each. a. Nominal GDP in year 1 is $ 100000 , and nominal GDP in year 2 is $ 251400 . (Round your responses to the nearest integer as needed.) b. Calculate real GDP in each year and the percentage increase in real GDP from year 1 to year 2 by using year 1 as the base year. Next, do the same calculations by using the chain-weighting method. Using year 1 as the base year, real GDP in year 1 is $ real GDP in year 2 is $ and the percentage increase in real GDP from year 1 to year 2 is %. (Round responses for real GDP to the nearest integer as needed, and round your response for the percentage increase to three decimal places as needed.)
Transcribed Image Text:In 1 and year 2, there are two products produced in a given economy: computers and bread. Suppose that there are no intermediate goods. In year 1, 80 year computers are produced and sold at $1000 each, and in year 2, 124 computers are produced and sold at $1700 each. In year 1, 20,000 loaves of bread are sold for $1 each, and in year 2, 29,000 loaves of bread are sold for $1.40 each. a. Nominal GDP in year 1 is $ 100000 , and nominal GDP in year 2 is $ 251400 . (Round your responses to the nearest integer as needed.) b. Calculate real GDP in each year and the percentage increase in real GDP from year 1 to year 2 by using year 1 as the base year. Next, do the same calculations by using the chain-weighting method. Using year 1 as the base year, real GDP in year 1 is $ real GDP in year 2 is $ and the percentage increase in real GDP from year 1 to year 2 is %. (Round responses for real GDP to the nearest integer as needed, and round your response for the percentage increase to three decimal places as needed.)
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