2022 good:

Question

Computers price =$917.00; quantity=9
Bananas price=$8.00; quantity=3, 268
Televisions price= ​$110.00; quantity=479
Cookies price= ​$1.00; quantity=10,102

2023good:
​pComputers price=$784.00; quantity=17
Bananas price=$10.00; quantity=765
Televisions price= ​$141.00; quantity=290
Cookies price= ​$2.00; quantity=10,797
​a. Assume 2023 as the base year.
    Calculate nominal GDP for 2022 $?
.
Calculate nominal GDP for 2023 $?
.

Answer 1

To calculate the nominal GDP for a particular year, we multiply the price of each good by the quantity sold and sum them up.

Using the values given:

Nominal GDP for 2022:
Computers: $917 x 9 = $8,253
Bananas: $8 x 3,268 = $26,144
Televisions: $110 x 479 = $52,690
Cookies: $1 x 10,102 = $10,102

Total nominal GDP for 2022 = $8,253 + $26,144 + $52,690 + $10,102 = $97,189

Nominal GDP for 2023:
Computers: $784 x 17 = $13,328
Bananas: $10 x 765 = $7,650
Televisions: $141 x 290 = $40,890
Cookies: $2 x 10,797 = $21,594

Total nominal GDP for 2023 = $13,328 + $7,650 + $40,890 + $21,594 = $83,462

Therefore, the nominal GDP for 2022 is $97,189 and the nominal GDP for 2023 is $83,462.

Answer 2

b. Assume 2023 as the base year.
    Calculate real GDP for 2022 $?
.
Calculate real GDP for 2023 $?

Answer 3

To calculate real GDP, we use the quantities of goods and services from the base year to remove the effects of inflation.

Using 2023 as the base year:

Real GDP for 2022:
Computers: $784 x 9 = $7,056
Bananas: $10 x 3,268 = $32,680
Televisions: $141 x 479 = $67,539
Cookies: $2 x 10,102 = $20,204

Total real GDP for 2022 = $7,056 + $32,680 + $67,539 + $20,204 = $127,479

Real GDP for 2023:
Computers: $784 x 17 = $13,328
Bananas: $10 x 765 = $7,650
Televisions: $141 x 290 = $40,890
Cookies: $2 x 10,797 = $21,594

Total real GDP for 2023 = $13,328 + $7,650 + $40,890 + $21,594 = $83,462

Therefore, the real GDP for 2022 is $127,479 and the real GDP for 2023 is also $83,462.