Assume an economy produces only hamburgers and hotdogs and the base year is 2005. $\begin{array}{lcccc}
&& {\text { Quantities Produced }} && {\text { Prices }} \
& 2005 & 2006 & 2005 & 2006 \
\text { Hamburgers } & 2,000 & 3,000 & \$ 2 & \$ 3 \
\text { Hotdogs } & 3,000 & 4,000 & \$ 1 & \$ 1.50
\end{array}$ Given the data in the table above, what is the value of nominal GDP in 2006?

Question

Assume an economy produces only hamburgers and hotdogs and the base year is 2005. $\begin{array}{lcccc} 
&& {\text { Quantities Produced }} && {\text { Prices }} \
 & 2005 & 2006 & 2005 & 2006 \
\text { Hamburgers } & 2,000 & 3,000 & \$ 2 & \$ 3 \
\text { Hotdogs } & 3,000 & 4,000 & \$ 1 & \$ 1.50
\end{array}$ Given the data in the table above, what is the value of nominal GDP in 2006?

Quizplus · Accepted Answer

Nominal GDP in 2006 is calculated using the 2006 prices and quantities: (3,000 hamburgers * $3) + (4,000 hotdogs * $1.50) = $9,000 + $6,000 = $15,000.

Assume an Economy Produces Only Hamburgers and Hotdogs and the Base