20132018ProductQuantityPriceQuantityPricePizzas100$10120$12Haircuts50154520Backpacks2004021045

Refer to Table 19-23.Suppose that a very simple economy produces three goods: pizzas, haircuts, and backpacks. Suppose that the quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above. Use the information to compute the real GDP in the year 2013 and 2018. Calculate the real GDP in 2018 assuming the base year is 2013. Do the same calculation assuming the base year is 2018. Are the calculations different? Why?

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Table 19-23 2013 2013 Product Quantity Price Quantity Price Pizzas 100 $10 120 $12 Haircuts 50 15 45 20 Backpacks 200 40 210 45 Nefertiti Table 19-23. Suppose that a very simple economy produces three goods: pizzas, haircuts, and backpacks. Suppose that the quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above. Use the information to compute the real GDP in the year 2013 and 2018. Calculate the real GDP in 2018 assuming the base year is 2013. Do the same calculation assuming the base year is 2018. Are the calculations different? Why