Question

An economy produces apples (in kilos) and computers (in units). The quantities of apples in years 2008, 2009 and 2010 are 500, 500 and 550, respectively. The quantities of computers in those same years are 5, 5 and 6, respectively. The prices of a kilo of apples (in dollars) in years 2008, 2009 and 2010 are 1, 2 and 3, respectively. The prices of computers (in dollars) for those same years are 900, 1000 and 1000. The nominal GDP for year 2010 is"

Answer 1

Answer:

Nominal GDP for year 2010 = $7,650

Explanation:

Nominal GDP measures the market value of all goods and services produced in an economy at current prices, normally in a year. Current prices are the prices of the year I want to know the GDP. In this case, our current prices are 2010 prices. To know the nominal GDP, we must multiply the quantities produced by their current prices:

Nominal GDP= 550*$3+6*$1000=$7,650