Suppose the following data describe output in two different years:

Item	Year 1	Year 2
Apples	20,000 @ $0.25 each	30,000 @ $0.30 each
Bicycles	700 @ $800 each	700 @ $800 each
Apps	10,000 @ $1.00 each	12,000 @ $2.00 each

Instructions: In parts a and c, enter your responses as a whole number. In parts b and d, round your responses to one decimal place.

1. Compute nominal GDP in each year.

Year 1: $

Year 2: $

1. By what percentage did nominal GDP change between Year 1 and Year 2?

Percentage change = [(new value original value) original value] 100

Nominal GDP (Click to select) increased decreased by %.

1. Now compute real GDP in Year 2 by using the prices of Year 1.

Real GDP: $

1. By what percentage did real GDP change between Year 1 and Year 2?

Percentage change = [(new value original value) original value] 100

Real GDP (Click to select) decreased increased by %.