Answer:
A= 62.5; B=60%; C = $160,000 and $352,000
Explanation:
A.
in 1984 each bucket of chicken was priced at $10 (nominal GDP)
in 2005 the price per bucket of chicken was $16 (real GDP)
GDP price index = nominal GDP divided by the real GDP × 100
=($10/$16)× 100
= 62.5
B.
In 1984, Price of each bucket = $10
In 2005, Price of each bucket = $16
Percentage difference = price In 2005 - price in 1984/price in 1984 × 100
= (16 - 10)/10 × 100
=6/10×100
=60%
The price level rise by 60% from 1984 to 2005
C.
In 1984, total buckets of chicken produced= 10,000
In 2005, total buckets of chicken produced = 22000
real GDP in 1984 = total buckets of chicken produced × current price per bucket in 2005
= 10,000 × $16
= $160,000
real GDP in 2005 = total buckets of chicken produced in 2005 × current price per bucket in 2005
= 22000 × $16
= $352,000
