Activity 11.3: GDP in the Economy 1. Calculate the gross domestic product using these figures. Consumer spending = $1,000 Investment spending = $200 Government spending = $500 GDP = Imports = $75 Exports = $50 Transfer payments = $50 2. The economy of Doraville produces three goods: pizza, lemons, and watches. The table below provides information about the prices and output for these goods for Years 1-3. Use the table to answer the questions that follow Price of Price of Quantity of Price of Quantity Watch Ear Quantity of of Ear Buds Buds Lemons Lemons Watches Year 1 $40 100 $1 200 $80 10 Year 2 45 110 $1 216 $82 12 Year 3 45 110 $1 220 $85 12 3. Calculate the nominal GDP for each year. Nominal GDP for Year 1 = Nominal GDP for Year 2 = Nominal GDP for Year 3 = 4. What was the percent change in nominal GDP from Year 1 to Year 2? 5. What was the percent change in nominal GDP from Year 2 to Year 3? 6. Using Year 1 as the base year, calculate the real GDP for each year. Real GDP for Year 1 = Real GDP for Year 2 = Real GDP for Year 3 =