Question

The economy of Tuland produces only two products

apples

and

digital cameras.

The following information is available for production and prices of​ Tuland's products for the years 2009 and 2010.

	2009	2010
Quantity of apples	10	11
Quantity of digital cameras	20	30
Price of apples	​$5.00	​$6.00
Price of digital cameras	​$50.00	​$30.00

Using above​ information, calculate the following values.

Real GDP for 2009 using 2009 as base year equals

​$nothing.

​(Enter your response rounded to two decimal​ places.)

Real GDP for 2009 using 2010 as base year equals

​$nothing.

​(Enter your response rounded to two decimal​ places.)

Real GDP for 2010 using 2009 as base year equals

​$nothing.

​(Enter your response rounded to two decimal​ places.)

Real GDP for 2010 using 2010 as base year equals

​$nothing.

​(Enter your response rounded to two decimal​ places.)

GDP growth rate using 2009 as base year equals

nothing​%.

​(Enter your response rounded to two decimal​ places.)

GDP growth rate using 2010 as base year equals

nothing​%.

​(Enter your response rounded to two decimal​ places.)

The arithmetic average of the two growth rates equals

nothing​%.

​(Enter your response rounded to two decimal​ places.)

Answer 1

Real GDP 2009 (2009 base year) = qty of apples * price of apple + qty of digital cameras + price

= 10 * 5 + 20 * 50

= 1050

Real GDP 2009 (2010 base year) = qty of apples * price of apple + qty of digital cameras + price

= 10 * 6 + 20 * 30

= 660 $

Real GDP 2010 (2009 base year) = qty of apples * price of apple + qty of digital cameras + price

= 11*5 + 30 * 50

= 1555

Real GDP 2010 (2010 base year) = qty of apples * price of apple + qty of digital cameras + price

= 11*6 + 30 * 30

= 966

Growth rate (2009 base year) = Real GDP in 20010 / 2009 – 1 * 100

= 1555 / 1050 – 1 * 100

= 48.09 %

Growth rate (2010 base year) = Real GDP in 2010 / 2009 – 1 * 100

= 966 / 660 – 1 * 100

= 46.36 %

Arithmetic average = 48.09 + 46.36 / 2 = 47.23 %