Artica is a nation with a simple economy that produces only six goods: oranges, bicycles, magazines, paper, orange juice, and hats. Assume that half of all the oranges are used to produce orange juice and one-third of all the paper is used to produce magazines.
a. Use the production and price information in the table to calculate nominal GDP for 2011.
b. Use the production and price information in the table to calculate real GDP for 2009, 2010, and 2011 using 2009 as the base year. What is the growth rate of real GDP from 2009 to 2010 and from 2010 to 2011?
c. Use the production and price information in the table to calculate real GDP for 2009, 2010, and 2011 using 2010 as the base year. What is the growth rate of real GDP from 2009 to 2010 and from 2010 to 2011?
|
2009
|
2010
|
2011
|
|
PRODUCT
|
QUANTITY
|
PRICE
|
QUANTITY
|
PRICE
|
QUANTITY
|
PRICE
|
|
Oranges
|
180
|
$ 0.90
|
200
|
$ 1.00
|
200
|
$ 1.25
|
|
Bicycles
|
20
|
85.00
|
25
|
90.00
|
30
|
95.00
|
|
Magazines
|
175
|
3.50
|
150
|
3.50
|
150
|
3.25
|
|
Paper
|
675
|
0.60
|
600
|
0.50
|
630
|
0.50
|
|
Orange
|
|
|
|
|
|
|
|
juice
|
40
|
3.50
|
50
|
4.00
|
60
|
4.50
|
|
Hats
|
70
|
10.00
|
80
|
12.50
|
100
|
15.00
|