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Question 36 (9 points) Suppose the economy produces shoes and shirts. Below is a table of the production for 2019 and 2020. 2019 2020 Shoe
Question 36 (9 points) Suppose the economy produces shoes and shirts. Below is a table of the production for 2019 and 2020. 2019 2020 Shoe price $42 $45 Shoe quantity 30,500 35,000 Shirt price $50 $55 Shirt quantity 59,000 59,000 A. Calculate nominal GDP for 2019 and 2020. Calculate the growth rate in nominal GDP from 2019 to 2020. B. Assume the base year is 2019. Calculate real GDP for 2019 and 2020. Calculate the growth rate in real GDP from 2019 to 2020. C. Why would policymakers need to know both the growth rate in nominal GDP and the growth rate in real GDP
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