Use the following information to answer the next several questions:
Scenario 1: Imagine that an economy produces two goods, flashlights and fishing lures. In 2015, the economy produced 70 flashlights and 40 fishing lures, and the prices of flashlights and fishing lures were $5 and $12, respectively. In 2016, the economy produced 85 flashlights and 50 fishing lures, and the prices of flashlights and fishing lures were $7 and $15, respectively.
-Based on the information in Scenario 1, nominal GDP grew by about ________ percent from 2015 to 2016.

Question

Quizplus · Accepted Answer

Nominal GDP in 2015 = (70 flashlights * $5) + (40 fishing lures * $12) = $350 + $480 = $830. Nominal GDP in 2016 = (85 flashlights * $7) + (50 fishing lures * $15) = $595 + $750 = $1345. The growth in nominal GDP = (($1345 - $830) / $830) * 100 = 62%.

Use the Following Information to Answer the Next Several Questions