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 Price2012 Quantity 2013 Price 2013 Quantity $2.00 $4.00 $2.00 500 1,000 200 $2.50 $5.00 $1.00 600 900 300 What was the growth rate of real gross domestic product (GDP) between the two years? a) 1.67 percent b) o percent c) 3.2 percent d) 2.4 percent e) 4.4 percent 7:48 PM ch

Answer 1

Answer
option B
0 percent

real GDP=sum of (base year price *current year quantity)
real GDP in 2012=2*500+4*1000+2*200
=5400
real GDP in 2013=2*600+4*900+2*300
=5400

the growth rate of real GDP=((real GDP in year 2 -Real GDP in year 1)/real GDP in year 1)*100
real GDP growth rate between 2012 to 2013 =((5400-5400)/5400)*100
=0%
The real GDP is the same in both years. It means there is no growth

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