Consider an economy that produces only three types of fruit: Apples, oranges and bananas. In the base year (a few years ago), the production and price data were as follows: Fruit Quantity Price Apples 3000 bags $2 per bag Bananas 6000 bunches $3 per bunch Oranges 8000 bags $4 per bag In the current year, the production and price data are as follows: Fruit Quantity Price Apples 4000 bags $3 per bag Bananas 14 000 bunches $2 per bunch Oranges 32 000 bags $5 per bag Find nominal GDP in the current year and in the base year. What is the percentage increase since the base year?
Consider an economy that produces only three types of fruit: Apples, oranges and bananas. In the base year (a few years ago), the production and price data were as follows: Fruit Quantity Price Apples 3000 bags $2 per bag Bananas 6000 bunches $3 per bunch Oranges 8000 bags $4 per bag In the current year, the production and price data are as follows: Fruit Quantity Price Apples 4000 bags $3 per bag Bananas 14 000 bunches $2 per bunch Oranges 32 000 bags $5 per bag Find nominal GDP in the current year and in the base year. What is the percentage increase since the base year?
Chapter6: Tracking The U.s. Economy
Section: Chapter Questions
Problem 1.1P
Related questions
Question
Consider an economy that produces only three types of fruit: Apples, oranges and bananas. In the
base year (a few years ago), the production and price data were as follows:
Fruit Quantity Price
Apples 3000 bags $2 per bag
Bananas 6000 bunches $3 per bunch
Oranges 8000 bags $4 per bag
In the current year, the production and price data are as follows:
Fruit Quantity Price
Apples 4000 bags $3 per bag
Bananas 14 000 bunches $2 per bunch
Oranges 32 000 bags $5 per bag
Find nominal
the base year?
Transcribed Image Text:Consider an economy that produces only three types of fruit: Apples, oranges and bananas. In the
base year (a few years ago), the production and price data were as follows:
Fruit
Quantity
3000 bags
Price
$2 per bag
$3 per bunch
Apples
Bananas
6000 bunches
Oranges
8000 bags
$4 per bag
In the current year, the production and price data are as follows:
Quantity
4000 bags
Fruit
Price
$3 per bag
$2 per bunch
Apples
Bananas
14 000 bunches
Oranges
32 000 bags
$5 per bag
Find nominal GDP in the current year and in the base year. What is the percentage increase since
the base year?
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