-The Table Gives Data on the Production and Prices in a Small

Question

Examlex · Accepted Answer

The Answer is To calculate the growth rate, it is necessary to calculate the growth rates using first 2010 and then 2011 prices and then take the average of the two rates.This procedure gives:
Real GDP in 2010 using 2010 prices = 150
Real GDP 2011 using 2010 prices = 350
Real GDP 2010 using 2011 prices = 250
Real GDP 2011 using 2011 prices = 600
Growth rate using 2010 prices = 133.3 percent
Growth rate using 2011 prices = 140.0 percent
Hence the growth rate equals 136.7 percent, the average of 133.3 percent and 140.0 percent.

-The Table Gives Data on the Production and Prices in a Small

Definitions: