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Nataliya [291]
3 years ago
13

The annual output and prices of a 3-good economy are shown in the table below. instructions: enter your answers as whole numbers

.
a. what was gdp in year 1? $ .
b. what was gdp in year 2? $
Business
1 answer:
Alex777 [14]3 years ago
3 0

In getting the GDP or Gross Domestic Product for year 1 and year 2, you should multiply the price to the quantity of goods sold and add them all up.

 

For GDP Year 1

 

Given:

 

Quarts of Ice Cream with a price of $6 and 4 quantity of goods.

 

Bottle of Shampoo with a price of $5 and 2 quantity of goods.

 

Jars of Peanut butter with a price of $3 and 4 quantity of goods.

 

= (6 x 4) + (5 x 2) + (3 x 4)

 

= $46

 

For GDP Year 2, the same products with different price and quantity.

 

= (6 x 6) + (5 x 3) + (3 x 3)

 

= $60

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