Question
In a country called Funlandia, there are two commodities produced - cars and wheat. The country produces 100 cars and 200 bushels of wheat in
In a country called Funlandia, there are two commodities produced - cars and wheat.
The country produces 100 cars and 200 bushels of wheat in 2020. The price of cars is $10,000 and the price of each bushel of wheat is $50.
In 2021, the country produces 200 cars and 100 bushels of wheat. The price of cars is $12,000 and the price of each bushel is $100.
(a) What is the nominal GDP in 2021?
(b) What is the real GDP in 2021?
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Microeconomics
Authors: David Besanko, Ronald Braeutigam
5th edition
1118572270, 978-1118799062, 1118799062, 978-1118572276
