Suppose that an economy produces only two final goods Orange Mocha Frappuccino (F) and Iced1)Lattes with extra whip (L). Hey, at least Fro Yo didn't figure into this one, right?The graphs below describe the economy in two separate years:Year 1: 2021Orange MochaFrappuccinoIced Latte w/ extra whipS10\$5D5025Year 2: 2022Iced Latte w/ extra whipOrange MochaFrappuccinoPL\$10DD5020Use the graphs to answer the questions on the following page.\$10 What is the nominal GDP of this economy in 2021? What about in 2022?a)b)What is the real GDP of this economy in 2022, using 2021 as the base year?Calculate the GDP deflator for the year 2022e)d)On the axes below, sketch and label the aggregate demand curve that coresponds to your answersfor (b) and (c). Use numbers! Remember that the GDP deflator corresponds to the price level,and that the horizontal axis measure real GDP.Price levelReal GDP

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a)

Nominal GDP is the market value of all final goods and services produced by an economy at the current market prices. It can be calculated by adding  revenue generated from all the goods and services produced in an year.

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Nominal GDP for year 2021 is ...

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