Activity 11.3: GDP in the Economy
1. Calculate the gross domestic product using these figures.
Consumer spending = $1,000
Investment spending = $200
Government spending = $500 GDP =
Imports = $75 Exports = $50
Transfer payments = $50
2. The economy of Doraville produces three goods: pizza, lemons, and watches. The table below provides information about the prices and output for these goods for Years 1-3. Use the table to answer the questions that follow
3. Calculate the nominal GDP for each year.
Nominal GDP for Year 1 =
Nominal GDP for Year 2 =
Nominal GDP for Year 3 =
4. What was the percent change in nominal GDP from Year 1 to Year 2?
5. What was the percent change in nominal GDP from Year 2 to Year 3?
6. Using Year 1 as the base year, calculate the real GDP for each year.
Real GDP for Year 1 =
Real GDP for Year 2 =
Real GDP for Year 3 =