Collegeton, a country with a simple economy, produces only Pizza and Calzones. Here is the price and output data for the country for two years.

Year 2012 :: Quantity of Pizza: 10 Price of Pizza: $10 Quantity of Calzone: 15 Price of Calzone: $5

Year 2016 :: Quantity of Pizza: 20 Price of Pizza: $12 Quantity of Calzone: 30 Price of Calzone: $6

a.Compute nominal GDP for 2012 and 2016.

b.How much did GDP grow between the two years (use a simple ratio)? Looking at the data in the table, how might this growth misrepresent the change in economic well-being in Collegeton?

c. Compute real GDP with a 2012 base, for both 2012 and 2016.

d. What is the growth in real GDP?