Question
Consider an economy that produces only two goods, soft drinks and hamburgers. The following price and quantity statistics are available about this economy: 2015 Hamburgers
Consider an economy that produces only two goods, soft drinks and hamburgers. The following price and quantity statistics are available about this economy:
2015
Hamburgers
Price
= $2.00; Quantity = 2000
Soft
Drinks
Price
= $0.50; Quantity = 2000
2016
Hamburgers
Price
= $2.25; Quantity = 2000
Soft Drinks
Price
= $0.50; Quantity = 2200
Taking 2015 as the base year, find the growth rate of the
constant-price GDP in 2016. Round to the nearest whole percent
and enter just the number with no symbols.
My calculations were
2015 Constant Prices GDP: (2*2000) +(0.5 *2000)=5000
2016 Constant Price GDP: (2*2000) +(0.5*2200)=5100
Growth Rate=5100-5000/5000 *100=2%
What am I doing wrong?
Another tutor said this had a growth rate 12%? How do you figure out constant price gdp then? And how do you figure out the growth rate of it? I used the base prices of 2015 got 2%, so I'm lost.
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