Consider the Following Data

Essay

Consider the following data. Assume that the economy produces only shoes.
(a) Calculate nominal GDP for each of the years.
(b) Calculate the average price over the two years.
(c) Calculate real GDP for each of the years.
(d) Calculate the growth rate of real GDP.
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Pairs of } \\\text { Shoes Sold }\end{array} & \begin{array} { c } \text { Actual } \\\text { Price }\end{array} \\\hline \text { Last year } & 400 & \$ 50 \\\hline \text { This year } & 420 & \$ 54 \\\hline\end{array}$$