Question
The tiny country of Lactosia produces milk, cows and yoghurt. The table below indicates production, along with market prices, for different years. The milk is
The tiny country of Lactosia produces milk, cows and yoghurt.
The table below indicates production, along with market prices, for different years. The milk is an intermediate good in the production of yoghurt. Cows are produced as an investment good. Yoghurt is for final consumption. Note: The base year is 2015.
Year Yoghurt price/litreMilk price/litre Cows price/cow Yoghurt litres Milk litres Cows number Population
2014 $3.00 $2.10 $30 23 18 2 8
2015 $4.00 $3.20 $30 30 18 2 10
2016 $5.00 $3.40 $30 32 28 2 12
In Lactosia, what was the growth rate of nominal GDP between 2014 and 2015?
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