Question: nominal gdp in year 2 is equal to?
Answer: Year 2 nominal GDP = 25∗$1500 + 12000∗ $1.10 = $50700. b) With year 1 as the base year, we need to value both years production at year 1 prices. In the base year, year 1, real GDP equals nominal GDP equals $30 000. In year 2, we need to value year 2s output at year 1 prices.