For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table:
For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table:
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:For the following question(s), suppose an economy produces only pens and pencils,
and that the quantity and price data is given by this table:
Year 1 quantity
Year 1 price
Year 2 quantity
Year 2 price
0000
Pens
15
100.00
89.05
140.80
120.06
$12
17
$14
Using the chain-weighting approach, calculate the real GDP in year 2 using GDP in
year 1 as the reference.
Pencils
10
$12
12
$15
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