4. Real - Vs. - Nominal GDP

The economy of country X produces 2 goods, bread and butter. In 2019, 740,000 units of bread was sold at $0.55 each and 650,000 units of butter at $0.64 each. From 2019 to 2020, price of bread increased to $0.70 and the units sold fell to 710,000; the price of butter fell to $0.60 and units sold rose to 688,900.

a. Calculate Nominal GDP in 2019 and 2020, then calculate Real GDP in 2020 using 2019 as the base year. (9 points)

2019 Nominal value for Bread: $________________________

2019 Nominal value for Butter: $________________________

2019 Nominal GDP: $ ____________________________________

2020 Nominal value for Bread: $________________________

2020 Nominal value for Butter: $________________________

2020 Nominal GDP: $ ____________________________________

2020 Real value for Bread: $________________________

2020 Real value for Butter: $________________________

2020 Real GDP: $ ____________________________________