The table contains price and quantity information for two vehicle models produced by Ford Motor Company,...

The table contains price and quantity information for two vehicle models produced by Ford Motor Company, the F-series trucks and Escape SUVs.

	2016		2017
	price	quantity	price	quantity
Escape SUVs	$24485	$307069	$24645	$308296
F-series trucks	$44400	$820799	$47800	$896764

a. Calculate the amount contributed by Ford to the U.S. GDP (real and nominal) from the sales of the two models in 2016 and 2017.

b. Determine the growth rate of nominal GDP (if Ford were the entire economy).

c. Determine the growth rate of real GDP( if Ford were the entire economy).

d. Use the shortcut you learned to convert between real and nominal growth rates to determine the growth rate of prices.

e. Is the increase in nominal GDP due to a change quantity, a change in prices, or both?

Expert Solution

Rahul Sunny answered 3 months ago

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