Gorgonzola is a small island nation with a simple economy that produces only six goods: sugar cane, yo-yos, rum, peanuts, harmonicas, and peanut butter. Assume that one-quarter of all the sugar cane is used to produce rum and one-half of all the peanuts are used to produce peanut butter.

a. Use the production and price information in the table to calculate nominal GDP for 2018.

b. Use the production and price information in the table to calculate real GDP for 2016, 2017, and 2018 using 2016 as the base year. What is the growth rate of real GDP from 2016 to 2017 and from 2017 to 2018?

c. Use the production and price information in the table to calculate real GDP for 2016, 2017, and 2018 using 2017 as the base year. What is the growth rate of real GDP from 2016 to 2017 and from 2017 to 2018?

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Product Sugar cane Yo-yos Rum Peanuts Harmonicas Peanut butter 2016 2017 150 500 75 100 2018 Quantity Price Quantity Price Quantity Price 240 $0.80 240 $1.00 300 $1.15 600 2.50 700 3.00 750 4.00 10.00 160 12.00 180 15.00 2.00 450 2.50 450 2.50 25.00 75 30.00 85 4.50 85 4.50 85 30.00 5.00