Question
The economy of country X produces 2 goods, bread and butter. In 2019, 740,000 units of bread was sold at $0.55 each and 650,000 units
The economy of country X produces 2 goods, bread and butter. In 2019, 740,000 units of bread was sold at $0.55 each and 650,000 units of butter at $0.64 each. From 2019 to 2020, price of bread increased by $0.15 and the units sold fell by 30,000; the price of butter fell by $0.04 and units sold rose by 38,900. Calculate Nominal GDP in 2019 and 2020.Calculate Real GDP in 2020 using 2019 as the base year. (9 points)
2019 Nominal value for Bread: $ 407000
2019 Nominal value for Butter: $416000
2019 Nominal GDP: $ 823000
2020 Nominal value for Bread: $497000
2020 Nominal value for Butter: $413340
2020 Nominal GDP: $ 910340
2020 Real value for Bread: $ 390500
2020 Real value for Butter: $440896
2020 Real GDP: $ 831396
Could you please explain with formulas?
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Research Design Qualitative Quantitative And Mixed Methods Approaches
Authors: John W. Creswell, J. David Creswell
5th Edition
1506386709, 9781506386706
