The consumers in the economy buys only two general types of...

The consumers in the economy buys only two general types of products: Apples, and Bananas. Price and Quantity information of these items over a period are shown below: Year 2019 Year 2020 Product Quantity Average Price Quantity Average Price per Unit per Unit Apples 13 510 816 Bananas 11 515 516 Using vear 2020 as the base vear; the economys consumer price index (CPI) in year 2012 Is (Your answer should include the first decimal point; if any)

Transcript

00:01 All right, so today we will be going over how to calculate the nominal gdp and for each year given a quantities produce and price table.

00:10 Right.

00:11 So let's get into the question here.

00:13 As you can see, tropical republic only produces two goods, which are bananas and coconuts.

00:19 And our job is to find out the nominal gdp for each year given the amount of quantities produce and the price of each good for that year.

00:29 Now there are two ways to calculate gdp, nominal and real.

00:33 So this question specifically focusing on nominal, but you'll see in the next video how we calculate using real gdp, right? and basically the main difference is real gdp takes into account inflation, right? so which makes it a little bit more accurate to compare the gdp each year, each quarter, whatever it may be.

00:54 Nominal gdp is a very quick method to get a rough estimate on how gdp is changing per year.

01:02 Right? so let's get into the question here.

01:05 So let's, we're going to have to calculate normal gdp for each year.

01:09 We got 2013 and 2014.

01:13 And basically we take the current price of each year to that's just a year.

01:21 So as you can see in 2013, 800 bananas, right? 800 bunches were produced.

01:33 We write that down at a cost of $2 a bunch, right? so the total income earned for that, for that year, that's for bananas, would be 800 times two, right? 800 bunches at $2 a bunch.

01:49 So that's one portion.

01:51 And then we have kopenets, right? so you just add the total...

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