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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Asked Nov 13, 2019
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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
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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

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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
help_outline

Image Transcriptionclose

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

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Expert Answer

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Hi there! Thankyou for submitting the question. Since we only answer up to three sub-parts, we will answer only first three. Please re-submit the question and specify the other sub-parts you would like to be answered.

 

Step 2

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.

 

 

 

 

Step 3

Nominal GDP for year 2021 is ...

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Nominal GDP = (PxQ)+(P xQ) where the superscript 1 in the variables denotes Year 1,1.e., 2021 Nominal GDP = ($10x50)+($5x25) $500+$125 -$625

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