Suppose that in 1984 the total output in a single-good economy was 8,000 buckets of chicken. Also suppose that in 1984 each bucket of chicken was priced at $19. Finally, assume that in 2005 the price per bucket of chicken was $26 and that 22,000 buckets were produced. Determine the GDP price index for 1984, using 2005 as the base year. By what percentage did the price level, as measured by this index, rise between 1984 and 2005? What were the amounts of real GDP in 1984 and 2005?
Suppose that in 1984 the total output in a single-good economy was 8,000 buckets of chicken. Also suppose that in 1984 each bucket of chicken was priced at $19. Finally, assume that in 2005 the price per bucket of chicken was $26 and that 22,000 buckets were produced. Determine the GDP price index for 1984, using 2005 as the base year. By what percentage did the price level, as measured by this index, rise between 1984 and 2005? What were the amounts of real GDP in 1984 and 2005?
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp
Section: Chapter Questions
Problem 4WNG
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Suppose that in 1984 the total output in a single-good economy was 8,000 buckets of chicken. Also suppose that in 1984 each bucket of chicken was priced at $19. Finally, assume that in 2005 the
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