Asimple economy produces two goods, corn breadcorn bread and softwaresoftware. price and quantity data are as follows:
production and prices in year 1 (base year)product - quantity - price per unitcorn bread - 100 - 1.00software - 550 - $45.00
production and prices in year 2product - quantity - price per unitcorn bread - 125.00 - $1.50software - 825.00 - $90.00
in year 2, nominal gdp is equal to: $ ,and real gdp is $ both responses rounded to the nearest penny ).

Nominal GDP is $74,437.50

Real GDP is $37,250

Explanation:

The computation of the nominal GDP is shown below:

Year 2 = Corn bread quantity × corn bread price + Software quantity × software price

= 125 × $1.5 + 825 × $90

= $187.50 + $74,250

= $74,437.50

And, the computation of the real GDP equals to

= Year 1 corn bread price  × year 2 corn bread quantity +  Year 1 software price  × year 2 software quantity

= $1 × 125 + $45 × 825

= $125 + $37,125

= $37,250

consumer credit. an advantage is that it allows consumers to afford expensive goods and services now, increasing their standard of living. however, a disadvantage is that it creates a trap for debt, if people do not have self control, they may see themselves filing personal bankruptcy.