Consider an economy that produces and consumes only three goods. The following table shows the prices and quantities of each good consumed in 2006, 2007, and 2008. Year 2006 2007 2008 Price of Fish $17 18 19 Quantity of Fish 40 55 90
Price of Pork $18 17 16
Quantity of Pork 225 250 275
Price of Beef $110 112 115
Quantity 17 27 27
a) Calculate Real GDP for 2008 using the chain-weighted method. Use 2007 as the reference year.
b) Note the growth rate of real GDP from 2007 to 2008. YOU MUST SHOW EVERY CALCULATION STEP; OTHERWISE, NO POINTS WILL BE REWARDED. UPLOAD YOUR ANSWER AS PICTURE (IMAGE) OR DOCUMENT FILE.