4) [10 points] Assume that the U5. real GDP in 2010 was $13,000 billion (in year-1990 dollars). In 1990, real GDP was $84\") billion (in year-1990 dollars). a) Use the compound growth formula to compute the average annual growth rate of real GDP from 1990 and 2010. Answer: b) If the $13,001 billion in 2005 was actually in year 2010 dollars and the price index that year was 150 (with the index in 1990, the base year, equal to 100), what was the actual average annual growth rate of real GDP between 1990 and 2010? Answer: 5) [10 points] Consider a simple closed economy in which there are only two rms, FlourCo and PastaCo. In the year 2000, FlourCo sells 0.5 million pounds of our to PastaCo and 2 million pounds of our to households. PastaCo uses all of the our it purchases to produce pasta and sells all 0.25 million pounds of pasta it produces lao households. In 2030, the price of our was $1 per pound and the price of a pound of pasta was $2.00. Compute GDP using the production-side method