The image provides data for calculating real GDP using 2012 as the base year. It includes information on three products: sweatshirts, dental examinations, and coffee drinks. For each product, it lists the quantity and price for the years 2012 and 2013.**2012**- **Sweatshirts:** Quantity: 50, Price: $35.00- **Dental examinations:** Quantity: 50, Price: $75.00- **Coffee drinks:** Quantity: 1,000, Price: $4.00**2013**- **Sweatshirts:** Quantity: 55, Price: $38.00- **Dental examinations:** Quantity: 60, Price: $42.00- **Coffee drinks:** Quantity: 1,200, Price: $4.50To calculate the real GDP for 2013, use 2012 prices:1. **Sweatshirts:** 55 x $35.00 = $1,9252. **Dental examinations:** 60 x $75.00 = $4,5003. **Coffee drinks:** 1,200 x $4.00 = $4,800Adding these amounts gives the real GDP for 2013:Real GDP = $1,925 + $4,500 + $4,800 = $11,225The correct answer is therefore the second option: $11,225.

Real GDP is that GDP which are measures on Base year prices. Real GDP = base year price * quantity

Answered: 2012 2013 Product Quantity Price…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4. GDP and Related Measures Suppose an economy produces only 2 products that will also be used for direct consumption, as per the article at the end of the exam: chicken wings and donuts. In the second quarter of 2021 (the base period), 180,000 pounds of chicken wings were produced, at a value of $3.50 per pound, while in the second quarter of 2022, production of chicken wings increased to 200,000 pounds, at a value of $3.75 per pound. In the second quarter of 2021 (the base period), 85,000 donuts were produced at a value of $0.85 per donut, while in the second quarter of 2022, donut production increased to 100,000 donuts, each at a value of $0.95 per donut. The population in this economy is 1000 individuals in 2022, while the number of hours worked in 2022 is 5000. Also, the quantities that were produced in 2021 represent the quantities that were purchased by the typical household, meaning that everything that was produced was sold. a. Solve for real GDP in the second quarter of 2021.…
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Page 550 1. Suppose that annual output in year 1 in a 3-good economy is 3 quarts of ice cream, 1 bottle of shampoo, and 3 jars of peanut butter. In year 2, the output mix changes to 5 quarts of ice cream, 2 bottles of shampoo, and 2 jars of peanut butter. If the prices in both years are $4 per quart for ice cream, $3 per bottle of shampoo, and $2 per jar of peanut butter, what was the economy's GDP in year 1? What was its GDP in year 2?
[Related to Solved Problem 2.2a] Use the information in the following table to calculate nominal and real GDP for 2005 and 2012. Assume that 2005 is the base year. 2005 Nominal GDP in 2005 is $. (Round your response to two decimal places.) Real GDP in 2005 is $. (Round your response to two decimal places.) S Product Oranges Plums Haircuts Pizza Quantity 30 200 95 80 Price ilum hina $4.00 $0.50 $30.00 $9.00 Quantity 30 250 120 60 2012 Price $4.50 $0.60 $30.00 $11.25
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