1. The nominal GDP for 2020 and 2021 is as follows:
2020 = $330
2021 = $592
2. The Real GDP for 2020 and 2021, using 2020 as the base year is as follows:
2020 = $330
2021 = $508 ($592/1.165)
3/ The Real GDP per capita for 2020 and 2021 using a population of 100 is as follows:
2020 = $3.30 per capita
2021 = $5/08 per capita
<h3>What is the difference between the Nominal GDP and the Real GDP?</h3>
The nominal GDP uses current prices while the Real GDP adjusts the current prices using the GDP deflator (thus accounting for inflation).
<h3>Data and Calculations:</h3>
Car Trucks
Quantity Price Quantity Price Nominal GDP
2020 12 $10 15 $14 $330 (12 x $10 + 15 x $14)
2021 20 $12 22 $16 $592 (20 x $12 + 22 x $16)
2021 Real GDP:
20 $10 22 $14 $508 (20 x $10 + 22 x $14)
GDP Deflator = Nominal GDP/Real GDP x 100
= $592/$508
= 1.165
Thus, while nominal GDP is based on current prices, the real GDP removes the effects of inflation.
Learn more about the GDP deflator at brainly.com/question/15041222
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