TABLE 11E1 Nominal Versus Real GDP COFFEE CUPS GDP NOMINALRE

TABLE 11.E1 Nominal Versus Real GDP COFFEE (CUPS) GDP (NOMINAL,REAL) YEAR 2010 (The base year) Expenditure 2011 (Case 1) MILK (GALLONS) Price Price Quantity $1.00 10 Quantity Quantity 20 Price Price 1.50 10 $4.00 Expenditure 2011 (Case 2) Price 1.00 Price 1.50 Price Quantity 40 15 Expenditure 2011 (Case 3) Quantity 15 Price Quantity $4.00 Expenditure

Solution

2010 GDP (nominal, real) = 50, 50

2011 case 1 GDP (nominal, real) = 95, 50

2011 case 2 GDP (nominal, real) = 95, 95

2011 case 3 GDP (nominal, real) = 182.5, 95

GDP deflator in 2007 = 106.23