# Question: calculating chainweighted real gdp prices in dollars and production for...

###### Question details

Calculating chain-weighted real GDP

Prices (in dollars) and production for an orchard are provided in
the following table:

Year--------Good------Price------Quantity

2016-------apples -----5----------20,000

2016-------apple juice---10-------9,000

2016-------cider----------14--------5,000

________________________________

2017------apples--------8--------25,000

2017----apple juice----15-------12,000

2017-----cider-----------18-------4,500

______________________________

2018----apples----------12-------35,000

2018-----apple juice----18-------15,000

2018-----cider------------25-------10,000

In all years, **half of all apple production is used to
produce apple juice and cider**. For this

problem, round all market values to the nearest whole dollar.

a) Calculate real production in all three years using 2016 prices,
then calculate output growth

for 2017 and 2018.

b) Calculate real production in all three years using 2018 prices,
then calculate output growth

for 2017 and 2018.

c) Calculate chain-weighted production in all three years using
2016 as the base year, then

calculate output growth for 2017 and 2018.

d) Calculate chain-weighted production in all three years using
2018 as the base year, then

calculate output growth for 2017 and 2018.