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Nata [24]
2 years ago
8

Learning Activity 2 (pls post under Unit 2)

Business
1 answer:
ICE Princess25 [194]2 years ago
3 0

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

#SPJ1

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