Question
Suppose that a simple, imaginary economy produces only two goods: bread and apples.In addition to these two goods, the economy also consumes and imports chicken.Using
Suppose that a simple, imaginary economy produces only two goods: bread and apples.In addition to these two goods, the economy alsoconsumes and importschicken.Using the information below, answer the following questions
Bread | Apples | Chicken | |
2019 Quantity | 100 | 200 | 40 |
2019 Price | $2.00 | $1.20 | $2.00 |
2020 Quantity | 150 | 210 | 70 |
2020 Price | $2.00 | $1.40 | $2.25 |
1. Calculate real GDP in 2019, using 2019 as the base year.
2. Calculate real GDP in 2020, using 2019 as the base year.
3. Calculate the growth rate in output between 2019 and 2020 using 2019 as the base year.
4. Calculate real GDP in 2019, using 2020 as the base year.
5. Calculate real GDP in 2020, using 2020 as the base year.
6. Calculate the growth rate in output between 2019 and 2020 using 2020 as the base year.
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