2013 Output2013 Prices2014 Output2014 PricesLemonade200 glasses$1 per glass220 glasses$1 per glassCookies100 cookies$2 per cookie100 cookies$2.25 per cookie 29.(Table: Lemonade and Cookies) The table Lemonade and Cookies shows the output levels and prices for lemonade and cookies. Assume that an economy produces only two goods, lemonade and cookies. Assuming that 2014 was the base year, the growth rate of real GDP from 2013 to 2014 was: A)11.25%. B)–5%. C)20%. D)4.7%.

29.Real GDP:2013 real GDP can be calculated as follows:

Answered: 2013 Output 2013 Prices 2014 Output…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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	2013 Output	2013 Prices	2014 Output	2014 Prices
Lemonade	200 glasses	$1 per glass	220 glasses	$1 per glass
Cookies	100 cookies	$2 per cookie	100 cookies	$2.25 per cookie

29.	(Table: Lemonade and Cookies) The table Lemonade and Cookies shows the output levels and prices for lemonade and cookies. Assume that an economy produces only two goods, lemonade and cookies. Assuming that 2014 was the base year, the growth rate of real GDP from 2013 to 2014 was:
	A)	11.25%.
	B)	–5%.
	C)	20%.
	D)	4.7%.

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