Table 4.24
-Refer to Table 4.24.Suppose that a very simple economy produces three goods: pizzas, haircuts, and backpacks.Suppose the quantities produced and their corresponding prices for 2007 and 2015 are shown in the table above.Use the information to compute real GDP in the year 2007 and 2015. Calculate real GDP in 2015 assuming the base year is 2007. Do the same calculation assuming the base year is 2015.Are the calculations different? Why?

Question

Table 4.24 
-Refer to Table 4.24.Suppose that a very simple economy produces three goods: pizzas, haircuts, and backpacks.Suppose the quantities produced and their corresponding prices for 2007 and 2015 are shown in the table above.Use the information to compute real GDP in the year 2007 and 2015. Calculate real GDP in 2015 assuming the base year is 2007. Do the same calculation assuming the base year is 2015.Are the calculations different? Why?

Quizplus · Accepted Answer

The Answer of Table 4.24 
-Refer to Table 4.24.Suppose that a very simple economy produces three goods: pizzas, haircuts, and backpacks.Suppose the quantities produced and their corresponding prices for 2007 and 2015 are shown in the table above.Use the information to compute real GDP in the year 2007 and 2015. Calculate real GDP in 2015 assuming the base year is 2007. Do the same calculation assuming the base year is 2015.Are the calculations different? Why?

Table 4.24 -Refer to Table 4.24.Suppose That a Very Simple Economy Produces