Simple economy Q4. Gorgonzola cane, yo-yos, rum, peanuts, harmonicas, and peanut butter. Assume that one- quarter of all the sugar cane is used to produce rum and one- half of all the peanuts are used to produce peanut butter. a small produces only six goods: sugar 2013 2014 2015 Product Quantity Price Quantity Price Quantity Price 300 Sugar cane Yo-yos 240 $0.80 240 $1.00 $1.15 600 2.50 700 3.00 750 4.00 Rum 150 10.00 160 12.00 180 15.00 2.00 25.00 Peanuts s00 450 2.50 450 2.50 85 85 Harmonicas 75 75 30.00 30.00 Peanut butter 100 4.50 85 4.50 5.00 a. Use the production and price information in the table to calculate nominal GDP for 2015. b. Use the production and price information in the table to calculate real GDP for 2013, 2014, and 2015 using 2013 as the base year. What is the growth rate of real GDP from 2013 to 2014 and from 2014 to 2015? c. Use the production and price information in the table to calculate real GDP for 2013, 2014, and 2015 using 2014 as the base year. What is the growth rate of real GDP from 2013 to 2014 and from 2014 to 2015?
Simple economy Q4. Gorgonzola cane, yo-yos, rum, peanuts, harmonicas, and peanut butter. Assume that one- quarter of all the sugar cane is used to produce rum and one- half of all the peanuts are used to produce peanut butter. a small produces only six goods: sugar 2013 2014 2015 Product Quantity Price Quantity Price Quantity Price 300 Sugar cane Yo-yos 240 $0.80 240 $1.00 $1.15 600 2.50 700 3.00 750 4.00 Rum 150 10.00 160 12.00 180 15.00 2.00 25.00 Peanuts s00 450 2.50 450 2.50 85 85 Harmonicas 75 75 30.00 30.00 Peanut butter 100 4.50 85 4.50 5.00 a. Use the production and price information in the table to calculate nominal GDP for 2015. b. Use the production and price information in the table to calculate real GDP for 2013, 2014, and 2015 using 2013 as the base year. What is the growth rate of real GDP from 2013 to 2014 and from 2014 to 2015? c. Use the production and price information in the table to calculate real GDP for 2013, 2014, and 2015 using 2014 as the base year. What is the growth rate of real GDP from 2013 to 2014 and from 2014 to 2015?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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