Posted by y912f on .
How do you calculate the nominal GDP and the real GDP of something?
I know the formula for GDP is y=c+I+G+NX
but in a problem like an economy produced this many of good#1 and this many of good#2 last year. The price of each good #1 was $8 last year, and each good#2 cost $7 last year. In the base year, each good#1 cost $3 and each good#2 cost $4.
What is the nominal GDP and the real GDP for last year?
how do I go and solve this?