Good Price Year 1 Quantity of Goods Year 1 Price Year 2 Quantity of Goods Year 2 Quarts of ice cream $4.00 3 $4.00 5 Bottles of shampoo 3.00 1 3.00 2 Jars of peanut butter 2.00 3 2.00 2

Complete question :

Good Price Year 1 Quantity of Goods Year 1 Price Year 2 Quantity of Goods Year 2 Quarts of ice cream $4.00 3 $4.00 5 Bottles of shampoo 3.00 1 3.00 2 Jars of peanut butter 2.00 3 2.00 2.

What was nominal GDP in year 1? What was real GDP in year 1?What was nominal GDP in year 2? What was real GDP in year 2?

$21 ; $21 ; $30 ; $30

Explanation:

Given the following:

Goods, price YR 1; qty YR 1; price YR 2; qty YR 2

Quarts of ice cream; $4.00; 3; $4.00; 5

Bottles of shampoo; $3.00; 1; $3.00; 2

Jars of peanut butter; $2.00; 3; $2.00; 2

A.) Nominal GDP in year 1:

NOMINAL GDP = SUMMATION OF THE PRODUCT OF PRICE AND QUANTITY OF GOODS FOR A PARTICULAR YEAR

QUARTZ OF ICE CREAM = $4 × 3 = $12

BOTTLE OF SHAMPOO = $3 × 1 = $3

JARS OF PEANUT BUTTER = $2 × 3 = $6

NOMINAL GDP = $(12 + 3 + 6) = $21

B) REAL GDP YEAR 1

REAL GDP = SUMMATION OF THE PRODUCT OF PRICE OF BASE YEAR AND QUANTITY OF GOODS FOR A PARTICULAR YEAR

QUARTZ OF ICE CREAM = $4 × 3 = $12

BOTTLE OF SHAMPOO = $3 × 1 = $3

JARS OF PEANUT BUTTER = $2 × 3 = $6

REAL GDP = $(12 + 3 + 6) = $21

C) NOMINAL GDP YEAR 2

QUARTZ OF ICE CREAM = $4 × 5 = $20

BOTTLE OF SHAMPOO = $3 × 2 = $6

JARS OF PEANUT BUTTER = $2 × 2 = $4

NOMINAL GDP = $(20 + 6 + 4) = $30

D)REAL GDP YEAR 2

REAL GDP = SUMMATION OF THE PRODUCT OF PRICE OF BASE YEAR AND QUANTITY OF GOODS FOR A PARTICULAR YEAR

QUARTZ OF ICE CREAM = $4 × 5 = $20

BOTTLE OF SHAMPOO = $3 × 2 = $6

JARS OF PEANUT BUTTER = $2 × 2 = $4

REAL GDP = $(20 + 6 + 4) = $30

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