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Suppose that a very simple economy produces three goods: pizzas, haircuts and backpacks. Suppose the quantities produced and their corresponding prices for 2015 and 2019

Suppose that a very simple economy produces three goods: pizzas, haircuts and backpacks. Suppose the quantities produced and their corresponding prices for 2015 and 2019 are as shown in the table. Use the information in the table to compute nominal GDP in the year 2019. Calculate real GDP in 2019 assuming the base year is 2015. Compare and explain the two results.

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Products produced by simple economy 2015 2019 Product Quantity Price Quantity Price Pizzas 200 10 150 12 Haircuts 80 20 85 25 Backpacks 40 50 30 70

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