Answer:
1. Suppose Quantity of Apple sold in year one & two = 100Kg.
Price in year 1 = $1.50 per kg
Price in year 2 = $3.00 per kg
Nominal GDP 1 = Price * Quantity = 1.50*100 = $150
Nominal GDP year 2 = 3*100 = $300
Change in Nominal GDP = $150
Percentage change in Nominal GDP = 100%
b. Real GDP of year 1 = Nominal GDP of year 1 = $150
Real GDP of year 2 = 1.50*100 = $150
Change in Real GDP = 0%
2. Quantity of Bread = 100 units price = $ 1 per unit, year 2 price = $ 2 per units
a. Nominal GDP year 1 = 1*100+1.5*100 = $250
Nominal GDP year 2 = 2*100+3*100 = $500
Percentage change in Nominal GDP = 500-250/500 * 100 = 100%
b. Real GDP year 1 = $250
Real GDP year 2 = 1*100 + 1.5*100 = $250
Percentage change in Real GDP = 0%
