Suppose that in 1984 the total output in a single-good economy was 7,000 buckets of chicken. Also suppose that in 1984 each bucket of chicken was priced at $ 10. Finally, assume that in 2005 the price per bucket of chicken was $ 16 and that 22,000 buckets were produced. Instructions: In part a enter your answer as an index number rounded to 1 decimal place. In parts b-c, enter your answer as whole numbers. What is 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 7,000 buckets of chicken. Also suppose that in 1984 each bucket of chicken was priced at $ 10. Finally, assume that in 2005 the price per bucket of chicken was $ 16 and that 22,000 buckets were produced. Instructions: In part a enter your answer as an index number rounded to 1 decimal place. In parts b-c, enter your answer as whole numbers. What is 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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