Question

Assume the economy of country G produces hotdogs and buns in the following quantities and prices in 2017 and 2018. Assume also that 2017 is the base year and the real GDP will be calculated using 2017 prices. What is the real yearly growth (between 2017 and 2018)

Answer 1

73.70%

Step-by-step explanation:

Note: The full question is attached as picture below

Real GDP in 2017 = ($3*5) + ($2*2)

Real GDP in 2017 = $15 + $4

Real GDP in 2017 = $19 million

Real GDP in 2018 = ($3*7) + ($2*6)

Real GDP in 2018 = $21 + $12

Real GDP in 2018 = $33 million

Real Growth rate between 2017 and 2018 = [(33 - 19) / 19] * 100 = [14/19] * 100 = 0.73684211 * 100 = 73.684211% = 73.70%