Problem
a) In 2017 the economy produces 100 loaves of bread that sell for $2 each. In 2018 the economy produces 200 loaves of break that sell for $3 each. Using 2017 as the base year, what's the nominal GDP for each year? What's the real GDP for each year? What's the GDP deflator for each year?
b) Why is it desirable for a country to have a large GDP? Give an example of something that would raise GDP yet be undesirable.