Quantities 2012 2013 Apples 60 160 Oranges 80 220

step 1 Question 18 asked you to calculate the nominal GDP in 2012 and 2013. The economy produces two go

Quantities 2012 2013 Apples 60 ...

$$\begin{array}{lcc} \text { Quantities } & 2012 & 2013 \\ \hline \text { Apples } & 60 & 160 \\ \text { Oranges } & 80 & 220 \\ \text { Prices } & 2012 & 2013 \\ \hline \text { Apples } & \$ 0.50 & \$ 1.00 \\ \text { Oranges } & \$ 0.25 & \$ 2.00 \end{array}$$ Calculate nominal GDP in 2012 and 2013

$$\begin{array}{lcc}
\text { Quantities } & 2012 & 2013 \\
\hline \text { Apples } & 60 & 160 \\
\text { Oranges } & 80 & 220 \\
\text { Prices } & 2012 & 2013 \\
\hline \text { Apples } & \$ 0.50 & \$ 1.00 \\
\text { Oranges } & \$ 0.25 & \$ 2.00
\end{array}$$
Calculate nominal GDP in 2012 and 2013

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Key Concepts

Price and Quantity Data Analysis

Understanding how to use price and quantity data is crucial in calculating economic metrics like nominal GDP. By pairing the correct quantities with their corresponding prices for each good in a given year, one can accurately determine the monetary value of the output produced during that period.

Nominal GDP

Nominal GDP represents the total market value of all final goods and services produced in an economy during a specific period, calculated using the current prices of that period. It provides an aggregate economic measure without adjustments for inflation, reflecting the actual prices at which goods and services are sold.

Aggregation of Economic Output

This concept involves summing the contributions of individual goods or services to derive the total economic output. Each item’s contribution is calculated by multiplying its quantity by its price in the same period, and the total nominal GDP is the sum of these individual products.

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