The table contains price and quantity information for two vehicle models produced by Ford Motor Company, the F-series trucks and Escape SUVs.

a. Calculate the amount contributed by Ford to U.S. GDP (real and nominal) from the sales of the two models in 2016 and 2017.

b. Determine the growth rate of nominal GDP (if Ford were the entire economy).

c. Determine the growth rate of real GDP (if Ford were the entire economy).

d. Use the shortcut you learned to convert between real and nominal growth rates to determine the growth rate of prices.

e. Is the increase in nominal GDP due to a change in quantity, a change in prices, or both?

Transcribed Image Text:

Escape SUVS F-series trucks Price $24,485 $44,400 2016 Quantity 307,069 820,799 Price $24,645 $47,800 2017 Quantity 308,296 896,764