2022 good:
Computers price =$917.00; quantity=9
Bananas price=$8.00; quantity=3, 268
Televisions price= $110.00; quantity=479
Cookies price= $1.00; quantity=10,102
2023good:
pComputers price=$784.00; quantity=17
Bananas price=$10.00; quantity=765
Televisions price= $141.00; quantity=290
Cookies price= $2.00; quantity=10,797
a. Assume 2023 as the base year.
Calculate nominal GDP for 2022 $?
.
Calculate nominal GDP for 2023 $?
.
To calculate the nominal GDP for a particular year, we multiply the price of each good by the quantity sold and sum them up.
Using the values given:
Nominal GDP for 2022:
Computers: $917 x 9 = $8,253
Bananas: $8 x 3,268 = $26,144
Televisions: $110 x 479 = $52,690
Cookies: $1 x 10,102 = $10,102
Total nominal GDP for 2022 = $8,253 + $26,144 + $52,690 + $10,102 = $97,189
Nominal GDP for 2023:
Computers: $784 x 17 = $13,328
Bananas: $10 x 765 = $7,650
Televisions: $141 x 290 = $40,890
Cookies: $2 x 10,797 = $21,594
Total nominal GDP for 2023 = $13,328 + $7,650 + $40,890 + $21,594 = $83,462
Therefore, the nominal GDP for 2022 is $97,189 and the nominal GDP for 2023 is $83,462.
b. Assume 2023 as the base year.
Calculate real GDP for 2022 $?
.
Calculate real GDP for 2023 $?
To calculate real GDP, we use the quantities of goods and services from the base year to remove the effects of inflation.
Using 2023 as the base year:
Real GDP for 2022:
Computers: $784 x 9 = $7,056
Bananas: $10 x 3,268 = $32,680
Televisions: $141 x 479 = $67,539
Cookies: $2 x 10,102 = $20,204
Total real GDP for 2022 = $7,056 + $32,680 + $67,539 + $20,204 = $127,479
Real GDP for 2023:
Computers: $784 x 17 = $13,328
Bananas: $10 x 765 = $7,650
Televisions: $141 x 290 = $40,890
Cookies: $2 x 10,797 = $21,594
Total real GDP for 2023 = $13,328 + $7,650 + $40,890 + $21,594 = $83,462
Therefore, the real GDP for 2022 is $127,479 and the real GDP for 2023 is also $83,462.
To calculate the nominal GDP for 2022, we need to multiply the price of each good by its respective quantity and then sum the results.
For 2022:
Computers: $917.00 * 9 = $8,253.00
Bananas: $8.00 * 3268 = $26,144.00
Televisions: $110.00 * 479 = $52,690.00
Cookies: $1.00 * 10,102 = $10,102.00
Nominal GDP for 2022 = $8,253.00 + $26,144.00 + $52,690.00 + $10,102.00 = $97,189.00
To calculate the nominal GDP for 2023, we follow the same process:
For 2023:
Computers: $784.00 * 17 = $13,328.00
Bananas: $10.00 * 765 = $7,650.00
Televisions: $141.00 * 290 = $40,590.00
Cookies: $2.00 * 10,797 = $21,594.00
Nominal GDP for 2023 = $13,328.00 + $7,650.00 + $40,590.00 + $21,594.00 = $83,162.00