1, Refer to Table 4.

Assume that this economy produces only two goods Good X and
Good Y. The value for this economy's nominal GDP in year 1

Nominal GDP year 1 = Sum (P1 x q1)

Production = q Prices = p Nominal GDP Y1

Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 P1 x q1

Good x 50 75 100 1 1 1.2 50
Good y 100 100 130 0.6 0.75 1 60
110

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