1 Suppose an economny's production consists only of com and soybeans. In 2005, 20 bushels of com are sold at S4 per bunhel and 10 bushels of soy beans are sold at 52 per bushel. In 2004, the priceof com was $2 per bushel and the price of soybeans was $1 per busbel Uing 2004 as the base year, it follows that, for 2005.O nomumal GDP is $50, real GDP is $100, and the GDP deflator in 50.nomanal GDP $50, real GDP is S100, and the GDP deflatot is 200O tominal GDP is $100, real GOP is $50, and the GDP defator is 50O neminal GDP it100, real GDP is $50, and the GDP deflaner is 200.

Nominal GDP is calculated by multiplying the current year quantities of goods and services with…

Suppose an economy's prodaction consusts only of com and soybean. In 2005, 20 bushels of corn are sold at $4 per bunhel and 10 buihels of soybeai e Saa at 32 DULel. 00 of com wan $2 per bushel and the prce of soybeana was S1 per bushel Uung 2004 as the bane year, it follows that, for 2005. O nominal GDP is $50, real GDP is $100, ad the GDP deflator is 50 nomanal GDP in $50, real GDP is 1100, nd the GDP dellatot is 200 O ominal GDP is $100, real GDP is 150, and the GDP deflator is 50 O nominal ODP t100, real GDP is $50, and the GDP deflater is 200

Suppose an economy's prodaction consusts only of com and soybean. In 2005, 20 bushels of corn are sold at $4 per bunhel and 10 buihels of soybeai e Saa at 32 DULel. 00 of com wan $2 per bushel and the prce of soybeana was S1 per bushel Uung 2004 as the bane year, it follows that, for 2005. O nominal GDP is $50, real GDP is $100, ad the GDP deflator is 50 nomanal GDP in $50, real GDP is 1100, nd the GDP dellatot is 200 O ominal GDP is $100, real GDP is 150, and the GDP deflator is 50 O nominal ODP t100, real GDP is $50, and the GDP deflater is 200

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Production And Growth

Section: Chapter Questions

Problem 5CQQ

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