(Answered) Find the nominal GDP and real GDP using each year as the base year. Good Quantity (Year 1) Price…

➤ How do you compute real GDP using Year 2 as the base year?
Using Year 2 as the base, value every quantity at Year 2 prices. Year 2 real GDP equals $447. Year 1 real GDP = 10×$6 + 20×$12 + 30×$3 = $390. This yields a real growth rate of (447−390)/390 ≈ 14.6%, showing quantity changes measured at Year 2 prices.