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Unformatted text preview: C. Calculate nominal GDP using the income approach. D. Compare the answers. Does the comparison seem sensible? Why or why not? 2. Starting with nominal GDP , for the US economy, show what you have to subtract and/or add to get to DISPOSABLE PERSONAL INCOME . Show EACH STEP clearly below. (5 POINTS) GDP 3. Here is an economy that produces only shirts, pizza and beer. You have the following information for two years. (3 POINTS) Output Output Price Price 2004 2005 2004 2005 Shirts 6 5 $1.00 $.50 Pizza 10 12 .50 $1.00 Beer 2 3 $5.00 $5.00 A. Using the information above, calculate the nominal GDP for 2004 . B. Using the information above, calculate real GDP for 2005 using 2004 as the base year. C. What was the percentage increase in real GDP from 2004 to 2005 using 2004 as the base year?...
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 Spring '07
 Staff
 Economics, Macroeconomics, gross domestic product, Value added, Final goods, Calculate Nominal GDP, Paper Industry

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