**PLEASE ANSWER ALL THE QUESTIONS AND SHOW ALL THE WORK**

In the textbook question, we imagine that laptops, economics textbooks and energy drinks are the only three final goods produced in the U.S. (??) economy. The table presents the total quantities of these three goods produced during the years 2014-2016, along with their average prices during each of these three years. The quantity figures reported in millions of items; the prices are in dollars per item.

When you report your results, don't add the six trailing zeros for millions. So you'd report the market value of the energy drinks produced in 2014 (if I asked you to) as $50, not $50,000,000.

The base year for real GDP calculations (original or chained) is 2014. "Real GDP" means the original, fixed-base-year version, not the modern chained version. But "chained real GDP" does mean the chained version. It's important to remember that the base year plays a much more limited role in calculating chained real GDP than it does in calculating conventional (original version) real GDP.

			Laptops			Texts			Drinks
			Q	p		Q	p		Q	p
2014			7	1500		7	100		25	2
2015			9	1200		9	110		30	4
2016			9	1000		10	120		35	4

1.Calculate GDP for 2016 using the prices from 2015.

2. Calculate GDP for 2015 using the prices from 2016.

You now have two values for GDP for 2015: a value calculated using 2015 prices (nominal GDP for 2015), and a value calculated using 2016 prices (from Part B2).

You also have two values for GDP for 2016: a value calculated using 2015 prices (from Part B1), and a value calculated using 2016 prices (nominal GDP for 2016).

3.Calculate the percent change in GDP, calculated using 2015 prices, from 2015 to 2016.

4.Calculate the percent change in GDP, calculated using 2016 prices, from 2015 to 2016.

5.Calculate the growth factor for chained real GDP from 2015 to 2016.

6. Calculate the percent change in chained real GDP from 2015 to 2016.

7.Multiply chained real GDP for 2015by your growth factor from question 5 , to calculate chained real GDP for 2016.