Table: Three-Good Economy II Product Quantity (2008) Price (2008) Quantity (2009
ID: 1162768 • Letter: T
Question
Table: Three-Good Economy II Product Quantity (2008) Price (2008) Quantity (2009) Price (2009) Computers Pizzas Burgers 30 100 200 $1,000 10 200 28 150 210 $995 15 20 Reference: Ref 6-5 (26-5) (Table: Three-Good Economy II) Suppose an economy produces only the three final goods shown in the table. The table gives information on the quantities produced and the prices of goods sold in 2008 and 2009. If 2008 prices are used in the calculation of real GDP, then nominal GDP in 2009 is and real GDP in 2009 is $34,310; $33,700 $35,350; $34,310 $33,700; $35,000 $35,000; $33,700Explanation / Answer
1) Solution: 34,310; 33,700
Working:
Quantity
Price
Nominal GDP
Computers
28
995
27860
Pizza
150
15
2250
Burgers
210
20
4200
34310
Quantity
Price
Real GDP
Computers
28
1000
28000
Pizza
150
10
1500
Burgers
210
20
4200
33700
?
2) Solution: The social security program sends a monthly payment to a senior citizen
Explanation: Transfer payments do not require a good or service in exchange such as pension payment; social security payments
Quantity
Price
Nominal GDP
Computers
28
995
27860
Pizza
150
15
2250
Burgers
210
20
4200
34310
Quantity
Price
Real GDP
Computers
28
1000
28000
Pizza
150
10
1500
Burgers
210
20
4200
33700
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