1)Sea Island produces only two goodslobsters and crabs. The base year is 2006 and the following tables give the quantities produced and prices charged...

Good

2006 Quantity

2007 Quantity

Lobsters

1000

1450

Crabs

500

525

Good

2006 Price

2007 Price

Lobsters

$20 each

$25 each

Crabs

$10 each

$12 each

(a)Calculate the value of Nominal GDP in 2006 and 2007

(b)Calculate Real GDP in 2007

(c)Calculate the Economic Growth rate between 2006 and 2007

(d)Calculate the inflation rate between 2006 and 2007

(e)Which is larger: Real GDP in the current year or Nominal GDP? Explain why...