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?

ENGR.ECONOMIC ANALYSIS
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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
Cardamom
$10
200
$15
220
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?
e) Will the answer to (b) change if 2016 is the base year?
Transcribed Image Text: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 Cardamom $10 200 $15 220 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? e) Will the answer to (b) change if 2016 is the base year?
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