Suppose we are looking at an economy that produces only toys. In 2014, the country’s toy factories produced 5 million toys, which it sold on the international market for $10 per toy. In 2015, the country produced 6 million toys, which it sold for $12 per toy. (LO9-2) a) What was the percentage increase in the production of toys from 2014 to 2015? b) What was the gross domestic product of this economy in 2014? What was the gross domestic product in 2015? (Remember that GDP is the monetary value of the economy’s output, valued at the market price.) c) What was the percentage increase in nominal GDP? d) What was the growth rate of the economy from 2014 to 2015? Explain.
