Artica is a nation with a simple economy that produces only six goods: oranges, bicycles, magazines, paper, orange juice, and hats. Assume that half of all the oranges are used to produce orange juice and one-third of all the paper is used to produce magazines.

a. Use the production and price information in the table to calculate nominal GDP for 2011.

b. Use the production and price information in the table to calculate real GDP for 2009, 2010, and 2011 using 2009 as the base year. What is the growth rate of real GDP from 2009 to 2010 and from 2010 to 2011?

c. Use the production and price information in the table to calculate real GDP for 2009, 2010, and 2011 using 2010 as the base year. What is the growth rate of real GDP from 2009 to 2010 and from 2010 to 2011?

 

	2009		2010		2011
PRODUCT	QUANTITY	PRICE	QUANTITY	PRICE	QUANTITY	PRICE
Oranges	180	$ 0.90	200	$ 1.00	200	$ 1.25
Bicycles	20	85.00	25	90.00	30	95.00
Magazines	175	3.50	150	3.50	150	3.25
Paper	675	0.60	600	0.50	630	0.50
Orange
juice	40	3.50	50	4.00	60	4.50
Hats	70	10.00	80	12.50	100	15.00