1. Using the information to fill the following Nominal GDP and Real GDP table is as follows:
Nominal GDP Real GDP
Year (Dollars) (Base year 2008, Dollars)
2008 410 410
2009 1,170 585
2010 840 480
2. From 2009 to 2010, nominal GDP <u>decreased</u>, and real GDP <u>decreased</u>.
<h3>What differentiates the nominal GDP from the real GDP?</h3>
The nominal GDP is based on the current prices and quantities.
The real GDP adjusts the current prices to remove the effects of inflation.
Pens Muffins
Price Quantity Price Quantity
Year (Dollars per pen) (Number of pens) (Dollars per muffin) (Number of
muffins)
2008 1 110 2 150
2009 2 155 4 215
2010 3 120 4 180
<h3>Nominal GDP:</h3>
2008 = $410 ($1 x 110 + $2 x 150)
2009 = $1,170 ($2 x 155 + $4 x 215)
2010 = $840 ($3 x 120 + $4 x 180)
Nominal GDP Real GDP
Year (Dollars) (Base year 2008, Dollars)
2008 410 410 ($1 x 110 + $2 x 150)
2009 1,170 585 ($1 x 155 + $2 x 215)
2010 840 480 ($1 x 120 + $2 x 180)
Learn more about nominal GDP and real GDP at brainly.com/question/834792
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