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Take a Test- Alannah Molenda e Secure https://www.mathxl.com/Student/PlayerTest.aspx?testld-187622373&centerwin yes This Question: 1 pt 35 of 40 (35 complete) A simple economy produces two goods, Bread and Video Games. Price and quantity data are as follows: Production and Prices in Year 1 (Base year) Product Quantity 105 650 Price Per Unit Bread $2.00 $40.00 Production and Prices in Year 2 Product Bread Video Games Quantity 131.25 975.00 Price Per Unit $3.00 $80.00 In Year 2, nominal GDP is equal to: s and real GDP is (enter both responses rounded to the nearest penny). Enter your answer in each of the answer boxes.

Explanation / Answer

Nominal GDP is sum of product of price and quantity of bread and video games.

Year 2 NGDP = 3*131.25 + 80*975 = 78395.25

Real GDP is sum of product of price in base year and current quantity of bread and games.

RGDP = 2*131 25 +40*975= 39262.5

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