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An economy produces three goods: cars, computers, and oranges. Quantities and prices per unit for years 2005 and 2006 are as follows: 2005 2006 Quantity

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An economy produces three goods: cars, computers, and oranges. Quantities and prices per unit for years 2005 and 2006 are as follows: 2005 2006 Quantity Price Quantity Price CARS IS S2000 12 $3000 COMPUTERS 8 $1000 6 $600 ORANGES 1200 $1 1000 SI A) What is nominal GDP in 2005 and in 2006? By what percentage does nominal GDP change from 2005 to 2006? B) Using the prices for 2006 as the set of common prices, what is real GDP in 2005 and in 2006? By what percentage does real GDP change from 2005 to 2004

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