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Suppose you have the following Price and Quantity data for 2013, 2014, and 2015. 2013 Quantity Price ($) Expenditure Cars 15 28000 Pizza Ovens 20

  1. Suppose you have the following Price and Quantity data for 2013, 2014, and 2015.
2013 Quantity Price ($) Expenditure
Cars 15 28000
Pizza Ovens 20 400
Tanks 5 300000
Nominal GDP
2014 Quantity Price Expenditure
Cars 12 25000
Pizza Ovens 30 500
Tanks 8 350000
Nominal GDP
2015 Quantity Price Expenditure
Cars 10 25000
Pizza Ovens 18 500
Tanks 3 320000
Nominal GDP
Quantity(2014) Price (2013) Expenditure
Cars 12 28000
Pizza Ovens 30 400
Tanks 8 300000
Real GDP 2014
Quantity(2015) Price(2013) Expenditure
Cars 10 28000
Pizza Ovens 18 400
Tanks 3 300000
Real GDP 2015

Compute Nominal (Money) GDP and Real GDP (using 2013 Prices) for each year. Compute the GDP growth rate for 2014 and 2015. Would the GDP Growth Rate for 2014 be different if 2014 prices were used as base year prices?

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