1. The nominal GDP for 2020 and 2021 is as follows:
2020 = $330
2021 = $592
2. The Real GDP for 2020 and 2021, using 2020 as the base year is as follows:
2020 = $330
2021 = $508 ($592/1.165)
3/ The Real GDP per capita for 2020 and 2021 using a population of 100 is as follows:
2020 = $3.30 per capita
2021 = $5/08 per capita
The nominal GDP uses current prices while the Real GDP adjusts the current prices using the GDP deflator (thus accounting for inflation).
Car Trucks
Quantity Price Quantity Price Nominal GDP
2020 12 $10 15 $14 $330 (12 x $10 + 15 x $14)
2021 20 $12 22 $16 $592 (20 x $12 + 22 x $16)
2021 Real GDP:
20 $10 22 $14 $508 (20 x $10 + 22 x $14)
GDP Deflator = Nominal GDP/Real GDP x 100
= $592/$508
= 1.165
Thus, while nominal GDP is based on current prices, the real GDP removes the effects of inflation.
Learn more about the GDP deflator at https://brainly.com/question/15041222
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