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# (Solved): Suppose that Frye, Hood, and Smith are living in a small society. Every year they produce 4 differen ...

Suppose that Frye, Hood, and Smith are living in a small society. Every year they produce 4 different commodities; shoes, potato, guitar, and olive oil. Production data is given in the table below. Please answer the following question using relevant information. You can write down your answers (please show your calculations in your answers), then take pictures of your answers (you may prefer to create a PDF file if you have more than one picture), and finally upload your answer on Canvas. Alternatively, you can answer this question using Microsoft Office programs like Word or Excel. 2016(Base Year) 2017 2018 Production Shoe 500 pairs 600 pairs 550 pairs Potato 1500 pounds 2000 pounds 1800 pounds Guitar 50 units 50 units 45 units Olive oil 500 gallons 400 gallons 425 gallons Prices Shoe \$60 \$50 \$70 Potato \$2 \$1.5 \$2.5 Guitar \$100 \$100 \$100 Olive oil \$4 \$5 \$6 Explain why we need to know price data to be able to calculate GDP. Is it possible to calculate GDP without price data? (4 points) Calculate Nominal GDP for all years. Analyze and explain your answer. (6 points) Calculate the Economic Growth Rate (Hint: Check the definition of economic growth before answering this question). (10 points)

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