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Homework answers / question archive / Given the following information determine both real and nominal for an economy with three sectors (pizza, books, and apples) for each year from the base year2012 to 2016

Given the following information determine both real and nominal for an economy with three sectors (pizza, books, and apples) for each year from the base year2012 to 2016

Finance

Given the following information determine both real and nominal for an economy with three sectors (pizza, books, and apples) for each year from the base year2012 to 2016. In the base year, the price of pizzas was $8 and increased every year thereafter by 50 cents. The price of books stayed at $7 each for the first two years before rising to $9 the following two years and rising to $10 in the final year. Apples experienced significant price swings due to varying weather conditions. In the base year apples were priced at $2 per pound. The following year the price doubled and stayed at that level for all of 2013 and 2014. In 2015 however, apples fell to $1 per pound then returned to the base price in 2016. Given this information complete the chart on the following page: (5 points) 
Year     Quantity Pizza    Quantity Books   Quantity Apples  Nominal  Real  Real GDP 

                                                                                                GDP      GDP  Growth rate

2012       100                          50                      400                                            N/A

2013       120                          60                      450

2014       120                          60                      450

2015       110                          30                      400 

2016       150                          40                      500 
 

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