Suppose an economy produces three goods: apple, orange, and banana. In 2015, the
Economy produces 1000 tonnes of apples, 2000 tonnes of oranges, and 3000 tonnes of banana, and the market prices (in 2015 dollars) are $3 per tonne, $2 per tonne, and $1 per tonne, respectively. In 2016, the production is 2000 tonnes for all three goods, and the market price (in 2016 dollars) is $2 per tonne for all goods. Now compute (a) real GDP for 2015 and 2016, using 2015 as the base year; (b) a GDP de?ator from 2015 to 2016, using again 2015 as the base year.