Answer to Question #188409 in Macroeconomics for malaika

Question

An economy produces three goods: orange, apple and orange juice. It is assumed that half of the orange are bought and consumed as final good; the other half is used to produce orange juice.                                                  

In 2019, 200 KGs of oranges are produced at Rs.40/kg, 500 KGs of apples are produced at 120/kg, and 200 Glasses of orange juice are produced at Rs.150/glass.

In 2020, 220 KGs of oranges are produced at Rs.50/kg, 450 KGs of apples are produced at 140/kg, and 230 glasses of orange juice are produced at Rs.135/glass.

 

Assuming 2019 is the base year; calculate the real GDP in 2019

Answer 1

In 2019,

200 KGs of oranges are produced at Rs.40/kg,

500 KGs of apples are produced at 120/kg,

200 Glasses of orange juice are produced at Rs.150/glass.

In 2020,

220 KGs of oranges are produced at Rs.50/kg,

450 KGs of apples are produced at 140/kg,

230 glasses of orange juice are produced at Rs.135/glass.

2019 is the base year

the real GDP in 2019 = Price in 2019 * quantity in 2019

Real GDP$= (200\times40) + (500\times120) +( 200\times150) = \$98,000$

$Answer =\$98,000$