Suppose a simple economy produces five goods: chicken, potatoes, oranges, orange juice, and tractors. The tractors are sold to firms as a final investment expenditure and not sold to the households. Additionally, half of the oranges are used as an intermediate good to make the orange juice, while the other half are sold as a final good to the household. The rest of the domestic goods (chicken, potatoes, and orange juice) are sold to the household as a final consumption good.
Quantity
(2018)
Price
(2018)
Quantity
(2019)
Price
(2019)
Chicken 100$7.00150$8.50Potatoes300$3.00500$4.00Oranges2000$5.003000$5.50Orange Juice500$8.00625$10.50Tractors10$1,000.0012$1,225.00
- Using 2018 as the base year, what is the fixed-weight real GDP in 2018?
A $25,600.00 B $15,600.00 C $10,600.00 D $20,600.00
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