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In 2013, Adanac produced 20 kilos of apples and 35 kilos of bananas. Both fruits were used exclusively for final consumption and nothing else was

In 2013, Adanac produced

20

kilos of apples and

35

kilos of bananas. Both fruits were used exclusively for final consumption and nothing else was produced. In 2013, a kilo of apples sold for

$6

while a kilo of bananas sold for

$10

.

In 2014, Adanac produced only

15

kilos of apples but produced

45

kilos of bananas. In 2014, prices were

$7

per kilo of apples and

$8

per kilo of bananas. Using 2013 prices, economists estimate that potential GDP is

$500

in 2014. The output gap in 2014 is

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