Question: 1. Suppose the information in the table is for simple economy that produces only four goods and services: text-books, hamburgers, shirts, and cotton. Assume that

1. Suppose the information in the table is for simple economy that produces only four goods and services: text-books, hamburgers, shirts, and cotton. Assume that all the cotton is used in the production of shirts

2005 2012 2013

Product Quantity Price Quantity Price Quantity Price

Textbooks 90 50 100 56 100 65

Hamburgers 75 2 100 2 120 2.25

Shirts 50 30 50 25 65 25

Cotton 100 0.80 800 0.60 120 0.70

a)Use the information in the table to calculate real GDP for 2012 and 2013, assuming that the base year is 2005.

b)What is the growth rate of real GDP between 2012 and 2013?

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