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Number 1.

Year Price of
Good 1 Quantity of
Good 1 Price of
Good 2 Quantity of
Good 2
2006 $2 5 $4 10
2007 $4 10 $8 5

The table above shows the prices and quantities of two goods produced in a country in 2006 and 2007. These are the only goods produced in the country. What is the nominal GDP in 2007?

a. $40
b. $80
c. $100
d. $200

Number 2. Consider the data in Question 1 above. What is the real GDP in 2007 (base year = 2006)?

a. $40
b. $80
c. $100
d. $200

Number 3.

Consider the data in Question 1 above. What is the GDP deflator in 2007 (base year = 2006)?

a. $40
b. $80
c. $100
d. $200

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This solution clearly assesses nominal GDP.

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What is the nominal GDP in 2007? 

It's $80 b

Number 2. Consider the data in Question 1 above. What is the real GDP in ...

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