5. Consider a simple economy below that produces three final goods that are exchanged on the market: coffee, cookies and bananas. Price Quantity 2017 Coffee $10 6 Cookies $2 Bananas $7 1 2018

Exploring Economics
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Author:Robert L. Sexton
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Chapter19: Measuring Economic Performance
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5. Consider a simple economy below that produces three final
goods that are exchanged on the market: coffee, cookies
and bananas.
Price Quantity
2017
Coffee $10 6
Cookies $2
Bananas $7
1
2018
Coffee $8
8
Cookies $4
12
Bananas $10 2
a. Calculate real GDP using 2017 prices as the base year
prices.
b. What is the percent change in real GDP in 2018? '
Transcribed Image Text:5. Consider a simple economy below that produces three final goods that are exchanged on the market: coffee, cookies and bananas. Price Quantity 2017 Coffee $10 6 Cookies $2 Bananas $7 1 2018 Coffee $8 8 Cookies $4 12 Bananas $10 2 a. Calculate real GDP using 2017 prices as the base year prices. b. What is the percent change in real GDP in 2018? '
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