**PLEASE ANSWER ALL SIX QUESTIONS AND SHOW ALL THE WORK**

In the textbook question, we imagine that laptops, economics textbooks and energy drinks are the only three final goods produced in the U.S. (??) economy. The table presents the total quantities of these three goods produced during the years 2014-2016, along with their average prices during each of these three years. The quantity figures reported in millions of items; the prices are in dollars per item.

When you report your results, don't add the six trailing zeros for millions. So you'd report the market value of the energy drinks produced in 2014 (if I asked you to) as $50, not $50,000,000.

The base year for real GDP calculations (original or chained) is 2014. "Real GDP" means the original, fixed-base-year version, not the modern chained version. But "chained real GDP" does mean the chained version. It's important to remember that the base year plays a much more limited role in calculating chained real GDP than it does in calculating conventional (original version) real GDP.

			Laptops			Texts			Drinks
			Q	p		Q	p		Q	p
2014			7	1500		7	100		25	2
2015			9	1200		9	110		30	4
2016			9	1000		10	120		35	4

The final question on this assignment, which is quite lengthy, asks you to calculate the level ofchained real GDP, and related growth rates, for the years 2015 and 2016, and for the one-year periods 2014-2015 and 2015-2016, respectively.

1.Calculate GDP for 2014 using the prices from 2015.

You now have two values for GDP for 2014: a value calculated using 2014 prices (nominal GDP for 2014), and a value calculated using 2015 prices (from Part A1).

You also have two values for GDP for 2015: a value calculated using 2014 prices (real GDP for 2015), and a value calculated using 2015 prices (nominal GDP for 2015).

2.Calculate the percent change in GDP, calculated using 2014 prices, from 2014 to 2015. Round to the nearest tenth of a percent.

3.Calculate the percent change in GDP, calculated using 2015 prices, from 2014 to 2015. Round to the nearest tenth of a percent.

4.Calculate the growth factor for chained real GDP from 2014 to 2015, using the geometric-averaging procedure.Round each of the two component growth factors (the ones being averaged) to thefifth decimal place, and round the average growth factor to thefourth decimal place.

5.Calculate the percent change in chained real GDP from 2014 to 2015, using the growth factor you calculated in Part A3. Round thepercentchange to the nearest tenth of a percent.

6.Multiply chained real GDP for 2014 (what is it?) by your growth factor from question 4to calculate chained real GDP for 2015.Round to the nearest dollar.