113k views
18 votes
Year P (bikinis) Q (bikinis) P (Speedos) Q (Speedos)

2000 $75 21 $50 10
2001 82 23 52 12
2002 88 28 55 15
2003 91 30 60 14

Using the data above, calculate real GDP for 2003 using the chain-weighted method.

User Blinkydamo
by
7.7k points

1 Answer

3 votes

Answer:

$2,950

Step-by-step explanation:

assuming that year 2000 is the base year:

real GDP for 2003 = (bikini price 2000 x bikini quantity 2003) + (speedos price 2000 x speedos quantity 2003) = ($75 x 30) + ($50 x 14) = $2,950

base year's prices become the real prices of the economy, and any change in real GDP is given by changes in output

User Driis
by
7.8k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.