The annual output and prices of a three-good economy are shown in the table below.
|Good||Price Year 1||Quantity of Goods Year 1||Price Year 2||Quantity of Goods Year|
|Quarts of ice cream||$4.00||4||$4.00||6|
|Bottles of shampoo||$3.00||2||$3.00||3|
|Jars of peanut butter||$2.00||4||$2.00||3|
a. What was GDP in year 1?
b. What was GDP in year 2?
The gross domestic product is the monetary value of all the finished goods and services produced in a country. It includes both public and private consumption, government outlays, investments and exports less imports.
Answer and Explanation:
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Learn more about this topic:
from Introduction to Business: Homework Help ResourceChapter 24 / Lesson 13