Nominal GDP for2000= 100 *1 +50 *1 = 1502001=200*2 +100*1.50= 5502002=300*3 +150*3 = 1350Real GDP for2001=100 *1 +50 *1 = 1502001=200 *1 +100 *1 = 3002002=300 *1 +150 *1 = 450a) Assume now in 2001 half of the Hummus consumed is imported. How does that change the nominal GDP?(b) Assume now in 2001, 100 units of the 200 units of Hummus produced is exported. How does that change the nominal GDP? 1. Consider an economy producing only Hummus and Falafel, all of which isdomestically consumed, if not st ated otherwise. There are no invest mentsand no government spendings. The following table contain s the produ ctionlevels and prices for the years 2000-2002.Year Hummus PriceFal afel Price$1$1,50$250$1$2$3200010020012001002002300150

We know that domestic income is the value of goods produced domestically during a year . Which also…

Answered: Nominal GDP for 2000= 100 *1 +50 *1 =…

Principles of Economics 2e

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Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

ChapterD: The Expenditure-output Model

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Nominal GDP for
2000= 100 *1 +50 *1 = 150

2001=200*2 +100*1.50= 550

2002=300*3 +150*3 = 1350

Real GDP for

2001=100 *1 +50 *1 = 150

2001=200 *1 +100 *1 = 300

2002=300 *1 +150 *1 = 450

a) Assume now in 2001 half of the Hummus consumed is imported. How does that change the nominal GDP?
(b) Assume now in 2001, 100 units of the 200 units of Hummus produced is exported. How does that change the nominal GDP?

1. Consider an economy producing only Hummus and Falafel, all of which is
domestically consumed, if not st ated otherwise. There are no invest ments
and no government spendings. The following table contain s the produ ction
levels and prices for the years 2000-2002.
Year Hummus Price
Fal afel Price
$1
$1,50
$2
50
$1
$2
$3
2000
100
2001
200
100
2002
300
150

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