Nominal GDP uses current prices as a measure of the value of goods and services produced, while real GDP uses prices of goods and services in a base year to measure value.

Suppose an economy consists of three goods: pizza, sodas, and televisions. The table below provides the prices and quantities of these goods in 2000 and 2003.

Pizzas Sodas Television

Price in 2000 $15 $1.50 $200
Quantity in 2000 20 60 10

Price in 2003 $18 $1.75 $225
Quantity in 2003 25 80 20

1) Using the information provided in the table, calculate nominal GDP for this economy in 2003, assuming 2000 is the base year.

2)Using the information provided in the table, calculate real GDP for this economy in 2003, assuming 2000 is the base year.