Question

Suppose the following data describe output in two different years:

Item Year 1 Quantity Year 1 Price Year 2 Quantity Year 2 Price
Oranges 15,000 $ 0.20 20,000 $ 0.25
Computers 600 $750.00 700 $ 840.00
Video Games 8,000 $ 0.75 10,000 $ 1.00

Compute nominal GDP in year 2 (Enter as a numeric value e.g. 100000)

Answer 1

Answer:

$603,00

Explanation:

Nominal GDP is the addition of current year prices multipled by quantity produced.

Gross domestic product is the sum of all final goods and services produced in an economy within a given period.

Nominal GDP = ($20,000 × $ 0.25) + (700 × $ 840.00) + (10,000 $ 1.00) = $5,000 + $588,000 + $10,000 = $603,000

I hope my answer helps you