Base year = 2014

2. Gorgonzola is a small island nation with a simple economy that produces only six goods: sugar cane, yo-yos, rum, peanuts, harmonicas, and peanut butter. Assume that one- third of all sugar cane is used to produce rum, and one-quarter of all the peanuts are used to produce peanut butter. Use the production and price information in the table from problem 3.6 on page 121 from the textbook to calculate real GDP for 2013, 2014, and 2015 using 2014 as the base year (30 pts). What is the growth rate of real GDP from 2013 to 2014 and from 2014 to 2015 (20 pts)? Product Sugar cane Yo-yos Rum Peanuts Harmonicas Peanut butter 2013 2014 2015 Quantity Price Quantity Price Quantity Price 240 $0.80 240 $1.00 300 $1.15 600 2.50 700 3.00 750 4.00 150 10.00 160 12.00 180 15.00 500 2.00 450 2.50 450 2.50 75 25.00 75 30.00 85 30.00 100 4.50 85 4.50 85 5.00