Suppose that the British economy produces two goods: laptops and books. The quantity produced and the...

Suppose that the British economy produces two goods: laptops and books. The quantity produced and the prices of these items for 2015 and 2016 are shown in the table below:

Year	Quantities produced	Price ($)
2015	Laptops = 60 Books = 1,000	Laptops = 200 Books = ?
2016	Laptops = 80 Books = ?	Laptops = 90 Books = 12

Instructions:Round your answer to two decimal places.

a. Let’s assume that the base year was 2015, so that real GDP in 2015 equals nominal GDP in 2015.

If the real GDP in Britain was $15,000 in 2015, the price of books was $3.00

.

Instructions:Round your answer to the nearest whole number.

b. Using your answer from part (a), if the growth rate in nominal GDP was 15 percent, books must have been produced in 2016.

Instructions:Round your answer to one decimal place.

c. Using your answers from parts (a) and (b), the growth rate in real GDP between 2015 and 2016 was

Expert Solution

Rahul Sunny answered 1 year ago

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Suppose that the British economy produces two goods: laptops and books. The quantity produced and the...

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