ECON 103 Lecture : SelectedTopics(1).pdf

• School: University of Illinois
• Department: Economics
• Course: ECON 103
• Professor: Baer

Document Summary

Money and real gdp (at least 2 questions) Suppose an imaginary country a consists of only two products: cloth and food. 20 price of cloth # of food produced. 2010: calculate money gdp for each year, using 2000 as the base year, calculate real gdp for each year, using 2005 as the base year, calculate real gdp for each year. Money gdp in 2000 = (5 10) + (2 10) = . Money gdp in 2005 = (10 10) + (4 10) = . Money gdp in 2010 = (12 20) + (5 5) = . Using 2000 as the base year means to use prices of 2000. Real gdp in 2000 = (5 10) + (2 10) = . Real gdp in 2005 = (5 10) + (2 10) = . Real gdp in 2010 = (5 20) + (2 5) = . Using 2005 as the base year means to use prices of 2005.