An economy produces turmeric for consumption, produces Cardamom to export, and imports sesame seeds for consumption. 2015 2016 Price Quantity Price Quantity Turmeric $5 100 $10 120 $10 200 $15 220 Cardamom Sesame seeds $5 100 $40 20 a) Use 2015 as base year to calculate real GDP for each year. b) What is the growth rate of real GDP between the years? c) Will the answer to (b) change if 2016 is the base year?
An economy produces turmeric for consumption, produces Cardamom to export, and imports sesame seeds for consumption. 2015 2016 Price Quantity Price Quantity Turmeric $5 100 $10 120 $10 200 $15 220 Cardamom Sesame seeds $5 100 $40 20 a) Use 2015 as base year to calculate real GDP for each year. b) What is the growth rate of real GDP between the years? c) Will the answer to (b) change if 2016 is the base year?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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