Question

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the following questions. Assume that the base year is 2012. Good 2012 Price 2012 Quantity 2013 Price 2013 Quantity A $2.00 500 $2.50 600 B $4.00 1,000 $5.00 900 C $2.00 200 $1.00 300 What was the growth rate of real gross domestic product (GDP) between the two years

Answer 1

Based on the prices of goods across both years, the growth rate of Real GDP between the two years was 0%.

How can the Real GDP growth rate be found?

First, find the Real GDP in 2012:

= ( 2 x 500) +  (4 x 1,000) + (2 x 200)

= 1,000 + 4,000 + 400

= $5,400

The Real GDP in 2013 will be found using the 2012 prices:

= (2 x 600) + (4 x 900) + (2 x 300)

= 1,200 + 3,600 + 600

= $5,400

The Real GDP growth rate is:

= (5,400 - 5,400) / 5,400

= 0%

Find out more on the Real GDP at https://brainly.com/question/13527379.

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