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Question 1:

Suppose the information in the following table is for a simple economy that produces only the following four goods: shoes, hamburgers, shirts, and cotton. Further, assume that all of the cotton is used to produce shirts. 2012 Statistics 2020 Statistics 2021 Statistics Product Quantity Price Quantity Price Quantity Price Shoes 90 $50.00 100 $60.00 100 $65.00 Hamburgers 85 3.00 120 3.00 135 3.50 Shirts 70 40.00 60 35.00 85 35.00 Cotton 12,000 0.09 12,000 0.07 13,000 0.08 a. If the base year is the year 2012, then real GDP for 2020 equals $ (round your answer to the nearest penny) and the real GDP for 2021 equals $ (round your answer to the nearest penny). b. The (annual) growth rate of real GDP in 2021 is |%. (Enter your response as a percentage rounded to two decimal places.)