Chapter 5: Problem 3
$$ \begin{array}{lcccc} & \multicolumn{2}{c}{\text { Year 1 }} & \multicolumn{2}{c}{\text { Year 2 }} \\\ \cline { 2 - 5 } & \text { Quantity } & \text { Price } & \text { Quantity } & \text { Price } \\ \hline \text { Oranges } & 100 & \$ 5 & 150 & \$ 5 \\ \text { Pears } & 100 & \$ 3 & 75 & \$ 4 \\ \hline \end{array} $$ a. What is the growth rate of constant-dollar real GDP using year 1 as the base year? b. What is the growth rate of constant-dollar real GDP using year 2 as the base year?
Short Answer
Step by step solution
Key Concepts
These are the key concepts you need to understand to accurately answer the question.