Suppose the following data describe output in two different years. Item Year 1 Year 2 Apples Bicycles Movie Rentals 20,000 @ 25¢ each 700 @ $800 each 6,000@ $1.00 each 30,000 @ 30¢ each 650 @ $900 each 8,000 @ $1.50 each
(a) Compute nominal GDP in each year.
(b) By what percentage did nominal GDP increase from Year 1 to Year 2?
(c) Now compute real GDP in Year 2 by using the prices of Year 1.
(d) By what percentage did real GDP change from Year 1 to Year 2?