Suppose that an economy produces only two final goods Orange Mocha Frappuccino (F) and Iced 1) 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: 2021 Orange Mocha Frappuccino Iced Latte w/ extra whip S10 $5 D 50 25 Year 2: 2022 Iced Latte w/ extra whip Orange Mocha Frappuccino PL $10 D D 50 20 Use 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 2022 e) d) On the axes below, sketch and label the aggregate demand curve that coresponds to your answers for (b) and (c). Use numbers! Remember that the GDP deflator corresponds to the price level, and that the horizontal axis measure real GDP. Price level Real GDP
Suppose that an economy produces only two final goods Orange Mocha Frappuccino (F) and Iced 1) 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: 2021 Orange Mocha Frappuccino Iced Latte w/ extra whip S10 $5 D 50 25 Year 2: 2022 Iced Latte w/ extra whip Orange Mocha Frappuccino PL $10 D D 50 20 Use 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 2022 e) d) On the axes below, sketch and label the aggregate demand curve that coresponds to your answers for (b) and (c). Use numbers! Remember that the GDP deflator corresponds to the price level, and that the horizontal axis measure real GDP. Price level Real GDP
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
Problem 9PA
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