Suppose that an economy produces two final goods, say

milk and potatoes:

In year 0, it produces 10 pounds of potatoes at a price of $1 a pound, and 5 bottles of milk at a price of $2 a bottle.

In year 1, it produces 15 pounds of potatoes at a price of $1 a pound, and 5 bottles of milk at a price of $3 a bottle.

Nominal GDP in year 0 is therefore equal to $20.

Nominal GDP in year 1 is equal to $30.

What is the percentage difference in growth rates of REAL GDP if we use prices of year 0 and prices of year 1 as the base year price ? (HINT: calculate real GDP for both base years seperately).

ANS=

Blank 1. Fill in the blank, read surrounding text.

%