The table shows the quantities produced and prices in 2015 and 2016 for an islan

Question

The table shows the quantities produced and prices in 2015 and 2016 for an island economy which produces only bananas and coconuts The base year is 2016 Calculate real GDP in 2015 and 2016 using the chained-dollar method In 2015 Item Bananas Coconuts Price Quantity 99 bunches $10 a bunch 53 bags $9 a bag In terms of what dollars is each of these two real GDPs measured? In 2016 Item Bananas Coconuts Real GDP in 2016 using the chained-dollar method is Price Quantity 114 bunches $11 a bunch Real GDP in 2015 using the chained-dollar method is 66 bags $10 a bag >>>Answer with a whole number Real GDP in 2015 and real GDP in 2016 are measured indollars

Explanation / Answer

For calculating real GDP by chained dollar method the GDP of both years will calculated using the prices of base year i.e., 2016.

Real GDP in 2015 = (99*11) + (53*10) = 1089+530 = $1619
Real GDP in 2016 = (114*11) + (66*10) = 1254+660 = $1914

Pls provide options for the last answer.

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