1. What is the nominal GDP of each year? What is the Real GDP for each year (using year 1 as a base year)? Year 1Year 2Year 3 Quantity Good A6810 Price Good A10001100 Quantity Good B20 Price Good B4610

2. Using year one as the base year, what is the value of the price index in year 1? Year 2? What is the rate of inflation between year 1 and year 2? Price Year 1Price Year 2Market Basket Quantity Pens$0.50$0.60100 Notepads$0.60$0.5050 Paperclips$0.20$0.3050

3. Calculate the GDP using the given information shown below Consumption spending: $55 Rental Income: $10 Interest: $30 Profits: $13 Investment Spending : $16 Wages: $31 Government Purchases: $42 Imports: $6 Exports: $14

4. Calculate the GDP using the given information shown below Consumption spending: $80 Rental Income: $20 Interest: $25 Profits: $15 Investment Spending : $12 Wages: $27 Government Purchases: $23 Imports: $11 Exports: $5

5. Value-Added GDP Question The Ford Company buys $4000 worth of steel from the Steel manufacturers, $3000 worth of computerized hardware and software, and $2000 worth of mechanical tools to manufacture a certain model of vehicle. Fords sells this particular model of vehicle at $15,000. The value-added by Ford is equal to: