N2

Suppose that Summerland is a simple economy that only produces two items - sandals and sunglasses The chart below shows the quantity and prices of both goods for several years. Use it to answer the following question, Let the base year be 2005. You should be able to fill in all remaining blank spaces. P Year P Q Nominal Real (sandals) (sandals) (sunglasses) (sunglasses) GDP GDP real GDP growth 2005 $40 200 $100 2006 $42 205 $100 82 2007 $42 205 $105 2008 $45 210 $105 90 What was nominal GDP in Summerland for 20067 $16,000 $16,400 $16,810 O $17.535 $18,900 $18900 $18 900