Suppose an economy produces only two goods: pizza and video games. a. In general, define the term Gross Domestic Product (GDP). b. Using Year 1 as the base year, fill in the table below and, for the economy as a whole, calculate: i. nominal GDP; ii. real GDP; iii. the GDP deflator Price of Video Games $250 $258 $260 $262 Number of Video Games |425 570 |550 580 Price of Pizza Quantity of Pizzas Nominal GDP GDP Real GDP Deflator Year $11 $13 $12 $14 300 310 324 410

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A:

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Q: real GDP

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