The country of Old Jersey produces milk and butter,and it has published the following macroeconomic data,where quantities are in gallons and prices are dollars per gallon:
$$\begin{array} { l c c c c }
& 2000 &&{ 2001 } \
\hline \text { Good } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \
\hline \text { Milk } & 500 & \$ 2 & 900 & \$ 3 \
\text { Butter } & 2000 & \$ 1 & 3000 & \$ 2 \
\hline
\end{array}$$
Between 2000 and 2001,nominal GDP grew by

Question

The country of Old Jersey produces milk and butter,and it has published the following macroeconomic data,where quantities are in gallons and prices are dollars per gallon:
$$\begin{array} { l c c c c } 
& 2000 &&{ 2001 } \
\hline \text { Good } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \
\hline \text { Milk } & 500 & \$ 2 & 900 & \$ 3 \
\text { Butter } & 2000 & \$ 1 & 3000 & \$ 2 \
\hline
\end{array}$$
Between 2000 and 2001,nominal GDP grew by

Quizplus · Accepted Answer

Nominal GDP in 2000 = (500 * $2) + (2000 * $1) = $1000 + $2000 = $3000. Nominal GDP in 2001 = (900 * $3) + (3000 * $2) = $2700 + $6000 = $8700. Growth = (($8700 - $3000) / $3000) * 100% = 190.0%.

The Country of Old Jersey Produces Milk and Butter,and It