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The annual output and prices of a three-good economy are shown in the table below. Good Price...

Question:

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?

$_____

GDP:

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.

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Gross Private Domestic Investment: Definition & Formula

from Introduction to Business: Homework Help Resource

Chapter 24 / Lesson 13
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