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Calculating chain-weighted real GDP Prices (in dollars) and production for an orchard are provided in the...

Calculating chain-weighted real GDP
Prices (in dollars) and production for an orchard are provided in the following table:
Year--------Good------Price------Quantity
2016-------apples -----5----------20,000
2016-------apple juice---10-------9,000
2016-------cider----------14--------5,000

________________________________

2017------apples--------8--------25,000
2017----apple juice----15-------12,000
2017-----cider-----------18-------4,500

______________________________
2018----apples----------12-------35,000
2018-----apple juice----18-------15,000
2018-----cider------------25-------10,000


In all years, half of all apple production is used to produce apple juice and cider. For this
problem, round all market values to the nearest whole dollar.
a) Calculate chain-weighted production in all three years using 2016 as the base year, then
calculate output growth for 2017 and 2018.

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Answer #1
Apples Apple Juice Cider
Price Quantity Price Quantity Price Quantity
2016 5 20000 10 9000 14 5000
2017 8 25000 15 12000 18 4500
2018 12 35000 18 15000 25 10000
Nominal GDP at current prices
2016 100000 90000 70000 260000
2017 200000 180000 81000 461000
2018 420000 270000 250000 940000
Real GDP at base year prices
Base year 2016 prices 5 10 14
2016 100000 90000 70000 260000
2017 125000 120000 63000 308000
2018 175000 150000 140000 465000
chain-weighted Real GDP
For 2017:
Apples Apple Jucie Cider Total
base year quantites at base year prices 2016 100000 90000 70000 260000
2017 quantities at base year prices 2017 125000 120000 63000 308000
2017 prcies 8 15 18
base year quantites at 2017 prices 2016 160000 135000 90000 385000
2017 quantities at 2017 prices 2017 200000 180000 81000 461000
Growth rate
2016 prices 18
2017 prices 20
Average 19
Real GDP 309662
chain-weighted Real GDP
For 2018: Apples Apple Jucie Cider Total
2017 prices 8 15 18
2017 quantities at 2017 prices 2017 200000 180000 81000 461000
2018 quantities at 2017 prices 2018 280000 225000 180000 685000
2018 prcies 12 18 25
2017 quantities at 2018 prices 2017 300000 216000 112500 628500
2018 quantities at 2018 prices 2018 420000 270000 250000 940000
Growth rate
2017 prices 49
2018 prices 50
Average 49
Real GDP 461633
GDP Growth Rate
2016 260000
2017 309662 19
2018 461633 49
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