Imagine the components of aggregate demand are:

Consumption 500 billion

Investment 100 billion

Government spending 200 billion

Import spending 150 billion

Total aggregate demand 900 billion

What is the value of export spending? Explain your answer.

A country produces only bananas and coconuts. The base year is 2015, and the table below gives the quantities produced and prices.

Year

Bananas bunches

Coconuts bunches

Quantities produced

2015

1,000

500

Quantities produced

2016

1,100

525

Prices

2015

$2

$10

Prices

2016

$3

$8

1. Calculate nominal GDP in 2015 and 2016:
2. Calculate the RGDP 2016