Using the table in question 1, what was real GDP in year 2, in year 1 prices? (Hint: assume prices of oranges and apples were unchanged, but new quantities apply) Answer:

Economics (MindTap Course List)
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Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp
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Fruitland has a very simple economy: it produces just apples and oranges. It has no imports and exports.

Using the table in question 1, what was real GDP in year 2, in year 1 prices?
(Hint: assume prices of oranges and apples were unchanged, but new quantities apply)
Answer:
Transcribed Image Text:Using the table in question 1, what was real GDP in year 2, in year 1 prices? (Hint: assume prices of oranges and apples were unchanged, but new quantities apply) Answer:
Fruitland has a very simple economy: it produces just apples and oranges. It has no imports and exports
Apples
Oranges
Quantity in year 1
Price in year I
Quantity in year 2
Price in year 2
50
100
$1.00
$0.80
80
120
$1.25
$1.60
Transcribed Image Text:Fruitland has a very simple economy: it produces just apples and oranges. It has no imports and exports Apples Oranges Quantity in year 1 Price in year I Quantity in year 2 Price in year 2 50 100 $1.00 $0.80 80 120 $1.25 $1.60
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