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Suppose that in 1984 the total output in a single-good economy was 10,000 buckets of chicken and the price of each bucket of chicken was $10. In 2005 the price per bucket of chicken was $20 and 25,000 buckets were produced.
Determine the GDP price index for 1984, using 2005 as the base year.
Instructions: Enter your response as an index number rounded to one decimal place.
GDP price index = 50
By what percentage did the price level, as measured by this index, rise between 1984 and 2005? 100 %
What were the amounts of real GDP in 1984 and 2005?
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