Question 1. Answer the following question based on the following info.
Alta Zorn Alta Zorn
Year (real GDP) (real GDP) (population) (population)
1 $2.000 $150,000 200 500
2 $2,100 $152,000 202 505
3 $2,200 $154,000 210 508
Per capita GDP was about :
A. $105 in year 3 in Alta
b. $303 in year 3 in Zorn
c. $ 200 in year 1 in Zorn
d. $ 5 in year 2 in Alta
Question 2. Answer the following question based on the following information:
Nominal Price
Year GDP index
1 $550 140
2 $560 135
3 $576 120
4 $586 117
5 $604 108
The economy above has experienced a:
a. a decline nominal GDP
b. a rising price level
c. a declining real GDP
d. deflation