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

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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

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2017------apples--------8--------25,000
2017----apple juice----15-------12,000
2017-----cider-----------18-------4,500

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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.

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