1. GDP and Related Measures

Suppose an economy produces only 2 products in a given quarter: cauliflower and

lemons. In the first quarter of 2020 (the base period), 18,000 pounds of cauliflower

were produced, at a value of $3.20 per pound, while in the first quarter of 2023,

cauliflower production increased to 21,000 pounds of cauliflower, at a value of $3.45

per pound.

In the first quarter of 2020 (the base period), 41,000 lemons were produced at a value

of $0.55 per lemon, while in the first quarter of 2023, lemon production increased to

48,000 lemons, each at a value of $0.70 per lemon.

The population in this economy is 900 individuals in the first quarter of 2023,

while the number of hours worked in the first quarter of 2023 is 7200.

Complete parts a, b, c, d, e, and f.

1. Solve for nominal GDP in the first quarter of 2020.
2. Solve for real GDP in the first quarter of 2020.
3. Solve for nominal GDP in the first quarter of 2023.
4. Solve for real GDP in the first quarter of 2023.
5. Solve for the growth rate of real GDP between the first quarter of 2020 and the first quarter of 2023.
6. Is real GDP or nominal GDP a more representative measure of economic growth?

Complete EITHER parts g and h OR parts i and j.

1. Solve for the real GDP per capita in the first quarter of 2023.
2. During which phase of the business cycle would an economy experience its lowest values for the real GDP and real GDP per capita?

1. Solve for the GDP price index for the first quarter of 2023.
2. Solve for the amount of labor productivity in the first quarter of 2023.