The economy of Utopia produces three goods: Computers, DVDs, and Pizzas. The table below shows the prices and output of the three goods for the years 2014, 2015, and 2016.

** Computers DVDs Pizzas**

Year Price Quantity Price Quantity Price Quantity

2014 $900 10 $10 100 $15 2

2015 $1,000 10.5 $12 105 $16 2

2016 $1,050 12 $14 110 $17 3

**a.** Calculate the nominal GDP for Utopia for each of the three years.

**b. **What is the percentage change in nominal GDP from 2015 to 2016.

**c. **Calculate the real GDP for Utopia using 2014 prices (2014=base year) for each of the three years.

**d. **What is the percentage change in real GDP from 2015 to 2016.

**e. **Discuss why economists consider real GDP a more accurate measure of growth in the economy?

-You should construct a table like the one below and fill in the blanks to answer the questions.

**Year Nominal GDP Growth rate Real GDP Growth rate
**

2014 —— N/A ——- N/A

2015 —— —— ——- ——-

2016 —— —— ——- ——-