Suppose that in year 1 an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each. the next year the economy produces 110 golf balls that sel for $3.25 each and 80 pizzas that sell for $9 cach
(a) what is the value of nominal gdp in year 1? what is the nominal gdp in year 27
(b) how much is the growth rate of nominal gdp from year i to year 2 (in percentage)?
(c) using year 1 as the base year, what is real gdp in year 1? what is the real gdp in year 2?