Question

In the year 2000, the economy produces 50 loaves of bread that sell for $1 each. In the year 2001, the economy produces 100 loaves of bread that sell for $2 each. In the year 2002, the economy produces 200 loaves of bread that sell for $3 each. Calculate nominal GDP for each year.

Answer 1

Answer:

• 2000 - $50
• 2001 - $200
• 2002 - $600

Explanation:

Nominal GDP is the market value of final goods and services in an Economy in a period, typically a year. The final goods in this scenario are the loaves of bread.

2000 Economy

= 50 loaves * 1

= $50

2001 Economy

= 100 * 2

= $200

2002 Economy

= 200 * 3

= $600