Use the following to answer questions: Table: Three-Good Economy II $$\begin{array} { l c c c c }
\hline \text { Product } & \text { Quantity (2008) } & \text { Price (2008) } & \text { Quantity (2009) } & \text { Price (2009) } \
\hline \text { Computers } & 30 & \$ 1,000 & 28 & \$ 995 \
\text { Pizzas } & 100 & 10 & 150 & 15 \
\text { Burgers } & 200 & 200 & 210 & 20 \
\hline
\end{array}$$
-(Table: Three-Good Economy II) Suppose an economy produces only the three final goods shown in the table. The table gives information on the quantities produced and the prices of goods sold in 2008 and 2009. What is the growth rate of real GDP in 2009 if 2008 prices are used in the calculation of real GDP?
A) -3.71%
B) -1.97%
C) 1.00%
D) 2.94%

Question

Use the following to answer questions: Table: Three-Good Economy II $$\begin{array} { l c c c c } 
\hline \text { Product } & \text { Quantity (2008) } & \text { Price (2008) } & \text { Quantity (2009) } & \text { Price (2009) } \
\hline \text { Computers } & 30 & \$ 1,000 & 28 & \$ 995 \
\text { Pizzas } & 100 & 10 & 150 & 15 \
\text { Burgers } & 200 & 200 & 210 & 20 \
\hline
\end{array}$$
-(Table: Three-Good Economy II) Suppose an economy produces only the three final goods shown in the table. The table gives information on the quantities produced and the prices of goods sold in 2008 and 2009. What is the growth rate of real GDP in 2009 if 2008 prices are used in the calculation of real GDP?
A) -3.71%
B) -1.97%
C) 1.00%
D) 2.94%

Quizplus · Accepted Answer

Real GDP growth rate = [(Real GDP 2009 - Real GDP 2008) / Real GDP 2008] * 100Real GDP 2008 = (30 * 1000) + (100 * 10) + (200 * 200) = 43,000Real GDP 2009 = (28 * 1000) + (150 * 15) + (210 * 20) = 41,900Real GDP growth rate = [(41,900 - 43,000) / 43,000] * 100 = -3.71%

Use the Following to Answer Questions: Table: Three-Good Economy II