00:01
So for this question, we are trying to understand nominal and real gdp.
00:08
So real gdp is adjusted for inflation.
00:12
So now we're looking at the year 2014.
00:16
Now we're calculating nominal gdp.
00:19
So our nominal gdp would just be the price times the quantity of the goods sold.
00:30
So we have the price of shirts as $12 and then $600 were sold.
00:38
And then we have to add it to the price of pants.
00:44
That's $18 .50 times the quantity of the pants sold.
00:56
So 12 times 600 gives you $7 ,200.
01:04
And then we have 18 .5 times 3 ,500 giving us $64 ,750.
01:19
So then let's add these together.
01:21
So use your calculator to find the sum.
01:24
And we get $71 ,950.
01:35
So then we want real gdp...