An economy produces orange (in kilos) and computers (in units). The quantities of orange in years 2019 and 2020 are 1000 and 1100. The quantities of computers in those same years are 8 and 16. The prices of a kilo of orange (in dollars) in years 2019 and 2020 are 10 and 14. The prices of computers (in dollars) for those same years are 1000 and 800. Compute the Laspeyres index (L). Recall you need to start by computing constant- price GDP using as base year the first of the two years in the table. Round to the first decimal and pick the closest answer.
An economy produces orange (in kilos) and computers (in units). The quantities of orange in years 2019 and 2020 are 1000 and 1100. The quantities of computers in those same years are 8 and 16. The prices of a kilo of orange (in dollars) in years 2019 and 2020 are 10 and 14. The prices of computers (in dollars) for those same years are 1000 and 800. Compute the Laspeyres index (L). Recall you need to start by computing constant- price GDP using as base year the first of the two years in the table. Round to the first decimal and pick the closest answer.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:An economy produces orange (in kilos) and computers (in units). The quantities of orange in years 2019 and
2020 are 1000 and 1100. The quantities of computers in those same years are 8 and 16. The prices of a kilo of
orange (in dollars) in years 2019 and 2020 are 10 and 14. The prices of computers (in dollars) for those same
years are 1000 and 800. Compute the Laspeyres index (L). Recall you need to start by computing constant-
price GDP using as base year the first of the two years in the table. Round to the first decimal and pick the
closest answer.
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