Asimple economy produces two goods, bread and technical manuals. price and quantity data are as follows: production and prices in year 1 (base year)product quantity price per unitbread 120 $3.00technical manuals 800 $50.00production and prices in year 2product quantity price per unitbread 150 $4.50technical manuals 1,200 $100.00in year 2, nominal gdp is equal to: _ , and real gdp is _ (enter both responses rounded to the nearest penny).

(1) 120,675

(2) 60,450

Explanation:

(1) Nominal GDP, year 2 ($) = Sum of (Year 2 price × Year 2 quantity)

                                              = 150 × 4.50 + 1,200 × 100

                                              = 675 + 120,000

                                            = 120,675

(2) Real GDP, year 2 ($) = Sum of (Year 1 price x Year 2 quantity)

                                        = 3 × 150 + 50 × 1200

                                       = 450 + 60,000

                                        = 60,450