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2009 2012 2013 Product Quantit

Author:
January 18th, 2023

2009 2012 2013

Product Quantity Price Quantity Price Quantity Price

MP3s 40 $250.00 45 $200.00 50 $150.00

Tacos 2,000 2.00 2,200 2.25 2,300 2.40

Coats 300 50.00 310 52.00 350 55.00

Consider the data above for a simple economy: Using 2009 as thebase year, calculate nominal GDP, real GDP, and the GDP deflatorfor 2013, Growth rate. Show your work

Since real GDP is adjusted for inflation and nominal GDP is not,nominal GDP must always be higher than real GDP. Do you agree ordisagree? Why?

Answer:

No, I do not agreenominal GDP must always be higher than real GDP. If inflation ispositive , then only nominal GDP will be higher than real GDP andif inflation is negative, real GDP will be higher than nominalGDP.

 
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