1. Country Z has the following output and prices for 2018 and 2019. Goods 2018 Quantity 2018 Price 2019 Quantity 2019 Price Hats 5,000 $8 5,000 $10 Scarves 2,000 $4 2,000 $5 Gloves 2,000 $4 3,000 $6

(a) Calculate Country Z’s nominal GDP in 2018, based only on consumer spending.

(b) Calculate Country Z’s nominal GDP in 2019, based only on consumer spending,

(c) Calculate Country Z’s real GDP in 2019 using 2018 as base year and its prices as constant prices, based only on consumer spending.

(d) Why might an increase in nominal GDP be unrelated to increased economic growth?

(e) What is the nominal GDP per capita for 2018 if the population of Country Z is 35 people?