Suppose that an economy produces only two types of goods. At a given year, it makes 70,973 units of good A which sells at $9 a unit and 64,928 units of good B which sells at $7 per unit. What is the nominal GDP of this economy for that year?

Question

Business

Garrett Hoffman

24 July, 04:35

Suppose that an economy produces only two types of goods. At a given year, it makes 70,973 units of good A which sells at $9 a unit and 64,928 units of good B which sells at $7 per unit. What is the nominal GDP of this economy for that year?

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Answers (1)

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Craig Whitaker · Answer 1

Answer:$1,093,253

Explanation:

GDP is the sum of all final goods and services produced in an economy in a given year.

Nominal GDP is calculated using current year prices.

Nominal GDP = (70,973 * $9) + (64,928 * $7) = $454,496 + 638,757 = $1,093,253