**Answer:**

The Real GDP Growth Rate = 26.15%

Real Interest Rate = 6%

**Explanation:**

GDP = Consumption Expenditure + Government Purchases + Investment Expenditure + Net exports ( Exports - Imports)

Consumption Expenditure = Plastic bags + Bread

Consumption Expenditure = $1200 + $500

Consumption Expenditure = $1700

Government Spending = Bread = $300

Investment Expenditure = Final Bread made by bread company + Machines Purchased

Investment Expenditure = $100 + $500

Investment Expenditure = $600

Exports = Wheat Exported = $180

Imports = Imported Peanut Butter by Consumer + Imported Peanut Butter by Government

Imports = $80 + $90

Imports = $170

Net Exports = Exports - Imports

Net Exports = $180 - $170

Net Exports = $10

Total GDP = 1700 + 300 + 600 + 10

Total GDP = $2610

Nominal GDP in 2015 = Price * Quantity

Nominal GDP in 2015 = $2 * 15 + $3.50 * 10

Nominal GDP in 2015 = $30 + $35

Nominal GDP in 2015 = $65

Nominal GDP 2016 = $2.50 * 20 + $4 * 12

Nominal GDP 2016 = $50 + $48

Nominal GDP 2016 = $98

Real GDP 2015 = Nominal GDP 2015 = $65 . This is because 2015 is base year.

Real GDP 2016 = $2 * 20 + $3.50 * 12

Real GDP 2016 = $40 + $42

Real GDP 2016 = $82

The Real GDP Growth Rate = (Real GDP 2016 - Real GDP 2015) / Real GDP 2015 * 100

The Real GDP Growth Rate = (82 - 65) / 65 * 100

The Real GDP Growth Rate = 17/65 * 100

The Real GDP Growth Rate = 0.2615385 * 100

The Real GDP Growth Rate = 26.15%

b. Nominal interest Rate = 10%

Inflation Rate = 4%

Real Interest Rate = Nominal Interest Rate - Inflation Rate

Real Interest Rate = 10% - 4%

Real Interest Rate = 6%