For the following question(s), suppose an economy produces only bread and computers. Assume that all production is consumed in each year, and that price and quantity data are given in the table below.

-If Year 1 is the base year,the growth of real GDP is approximately
A) 100%.
B) 109.5%.
C) 137.5%.
D) 148%.

Question

For the following question(s), suppose an economy produces only bread and computers. Assume that all production is consumed in each year, and that price and quantity data are given in the table below.

-If Year 1 is the base year,the growth of real GDP is approximately
A) 100%. 
B) 109.5%. 
C) 137.5%. 
D) 148%.

Quizplus · Accepted Answer

The growth of real GDP is calculated by comparing the GDP of the current year to the base year. If the real GDP has increased by 137.5% from the base year, it means it has grown by that percentage.

For the Following Question(s), Suppose an Economy Produces Only Bread