Suppose that in year 1 nominal GDP for a country is
$5,200 billion. The GDP price index is
114.9, and the population is
100 million. In year 1, the real wage averages
$18 per hour and workers work
35 hours per week.
In year 2, this country's nominal GDP is
$5,800 billion. The GDP price index is
115.1, and the population is now
105 million. Assume that in year 2 the real wage
averages
$18 per hour and workers work...