The chart provides price and output information for New Zealand. Use this information to calculate real and nominal GDP for both years. Use 2017 as the base year. 2016 Price | Quantity Ice cream | $7.00 | 600 Blue jeans | $70.00 | 20 Laptops | $300.00 | 5 2017 Price | Quantity Ice cream | $3.00 | 400 Blue jeans | $20.00 | 90 Laptops | $300.00 | 5 2016 nominal GDP: $ 2017 nominal GDP: $ 2016 real GDP: $ 2017 real GDP: $
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- Ice cream: \( 7.00 \times 600 = 4200 \) - Blue jeans: \( 70.00 \times 20 = 1400 \) - Laptops: \( 300.00 \times 5 = 1500 \) - Total 2016 nominal GDP: \( 4200 + 1400 + 1500 = 7100 \) Show more…
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(Related to Solved Problem 8.1 on page 252 ) Suppose that a simple economy produces only four goods: shoes, hamburgers, shirts, and cotton. Assume that all the cotton is used in the production of shirts. Use the information in the following table to calculate nominal GDP for 2017 . $$\begin{array}{|c|}\hline {}& {\text { Production and Price Statistics for } 2017} \\ \hline {\text { Product }} & {\text { Quantity }} & {\text { Price }}\\ \hline {\text { Shoes }} & {100} & {\text { S60.00 }} \\ \hline {\text { Hamburgers }} & {100} & {2.00} \\ \hline {\text { Shirts }} & {50} & {25.00} \\ \hline {\text { Cotton }} & {80} & {0.60} \\ \hline \end{array}$$
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