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Real GDP

The Republic of Republic produces two goods, marshmallows (MM) and soda water (SW). In 1994, the 100 units of MM produced sold for $3 per unit and the 50 units of SW produced sold for $1 per unit. In 1999, the 150 units of MM produced sold for $6 per unit, and the 75 units of SW produced sold for $2 per unit. Calculate Real GDP for 1999, assuming that 1994 is the base year.

Country A produces two goods, elephants and saddles. In the year 2001, the 20 units of elephants produced sold for $3,000 per unit and the 30 units of saddles produced sold for $300 per unit. In 2002, the 25 units of elephants produced sold for $4,000 per unit, and the 45 units of saddles produced sold for $250 per unit. Real GDP for 2002, assuming that 2001 is the base year is:

10. A Honda Accord sells for $17,600 in the United States and for SF25,520 in Switzerland. Given an exchange rate of SF1.45 = $1, how do the car prices of both countries compare?

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Solution Preview

The Republic of Republic produces two goods, marshmallows (MM) and soda water (SW). In 1994, the 100 units of MM produced sold for $3 per unit and the 50 units of SW produced sold for $1 per unit. In 1999, the 150 units of MM produced sold for $6 per unit, and the 75 units of SW produced sold for $2 per unit. Calculate Real GDP for 1999, assuming that 1994 is the base ...

Solution Summary

Response helps in estimating Real GDP

$2.19