A very simple economy produces three goods: movies, burgers, and bikes.

able 19-17

	2013		2018
Product	Quantity	Price	Quantity	Price
Movies	20	$6.00	30	$7.00
Burgers	100	2.00	90	2.50
Bikes	3	1,000.00	6	1,100.00

A very simple economy produces three goods: movies, burgers, and bikes. The quantities produced and their corresponding prices for 2013 and 2018 are shown in the table above.

Refer to Table 19-17. What is real GDP in 2018, using 2013 as the base year?

Solutions

Expert Solution

To calculate real GDP using 2013 as base year, we multiply the quantities of 2018 with the price in 2013, thus

Real GDP (2018) = 30*6+90*2+6*1000 = 180+180+6000 = $6,360

Rahul Sunny answered 1 year ago

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