Question

A simple economy produces two​ goods,

Apple Pies
and
Technical Manuals.
Price and quantity data are as​ follows:
Production and Prices in Year 1​ (Base year)
Product
Quantity
Price Per Unit
Apple PiesApple Pies
100
​$3.00
Technical ManualsTechnical Manuals
550
​$45.00
Production and Prices in Year 2
Product
Quantity
Price Per Unit
Apple PiesApple Pies
125.00
​$4.50
Technical Manuals
825.00
​$90.00
In Year​ 2, nominal GDP is equal​ to:
​$,
and real GDP is

​$

​(enter both responses rounded to the nearest penny​).

Answer 1

In year 2, nominal GDP is equal to: 33750

125 * $4.5 *60 = 562.5

And real GDP is: 49,875

125 * 3 +825 * 60= 49,875