- The Next Four Questions Involve The Following Situation Consider An Economy With Only Two Products Guns And Butter Th 1 (180.29 KiB) Viewed 63 times
The next four
questions involve the following situation: Consider an economy with only two products: guns and butter. There is no international trade and no gov- ernment. The following table shows production and prices in 2019 and 2020. Use 2019 as the base year for any relevant calculations. Year Good Production (units) 2019 2019 2020 2020 Guns Butter Guns Butter Price per unit $1,000 $100 $500 $200 10,000 5,000 20,000 5,000 9. What is nominal GDP in 2019? (A) $10,000,000. (B) $20,500,000. (C) $11,000,000. (D) $10,500,000. 10. What is nominal GDP in 2020? (A) $10,000,000. (B) $20,500,000. (C) $11,000,000. (D) $10,500,000
11. What is real GDP in 2020? (A) $10,000,000. (B) $20,500,000. (C) $11,000,000. (D) $10,500,000. 12. What is the GDP deflator in 2020? (A) 537. (B) 186. (C) 18.6. (D) 53.7.