Suppose that a very simple economy produces three goods: pizzas, haircuts and backpacks. Suppose the quantities produced and their corresponding prices for 2009 and 2013 are shown in the table:

Use the information to compute real GDP in the years 2013 and 2017. Calculate real GDP in 2017 assuming the base year is 2013. Real GDP is found by valuing GDP in a particular year using base year prices. When 2013 is the base year, real GDP for 2017 is found by multiplying 2013 prices by 2017 quantities and then adding the values up. Do the same calculation assuming the base year is 2017. Are the calculations different? Why?
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Question

Suppose that a very simple economy produces three goods: pizzas, haircuts and backpacks. Suppose the quantities produced and their corresponding prices for 2009 and 2013 are shown in the table:
  
Use the information to compute real GDP in the years 2013 and 2017. Calculate real GDP in 2017 assuming the base year is 2013. Real GDP is found by valuing GDP in a particular year using base year prices. When 2013 is the base year, real GDP for 2017 is found by multiplying 2013 prices by 2017 quantities and then adding the values up. Do the same calculation assuming the base year is 2017. Are the calculations different? Why?
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Quizplus · Accepted Answer

The Answer of Suppose that a very simple economy produces three goods: pizzas, haircuts and backpacks. Suppose the quantities produced and their corresponding prices for 2009 and 2013 are shown in the table:
  
Use the information to compute real GDP in the years 2013 and 2017. Calculate real GDP in 2017 assuming the base year is 2013. Real GDP is found by valuing GDP in a particular year using base year prices. When 2013 is the base year, real GDP for 2017 is found by multiplying 2013 prices by 2017 quantities and then adding the values up. Do the same calculation assuming the base year is 2017. Are the calculations different? Why?
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Suppose That a Very Simple Economy Produces Three Goods: Pizzas