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An economy produces only apples and oranges. The base year is 2000, and the following table gives the quantities produced and the prices. Quantities 2000
An economy produces only apples and oranges. The base year is 2000, and the following table gives the quantities produced and the prices.
| Quantities | 2000 | 2020 |
| Apples | 60 | 160 |
| Oranges | 80 | 220 |
| Prices | 2012 | 2013 |
| Apples | $0.50 | $1.00 |
| Oranges | $0.25 | $2.00 |
- Calculate nominal GDP in 2000 and 2020.
- Calculate real GDP in 2000 and 2020 expressed in base-year prices.
- What is the economic growth rate in 2020?
- Distinguish between real GDP and potential GDP
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Valuing The Earth, Economics, Ecology, Ethics
Authors: Herman E Daly, Kenneth N Townsend
2nd Edition
0262540681, 9780262540681
