Suppose That, in Year 1, an Economy Produces 100 Golf

Multiple Choice

Suppose that, in year 1, an economy produces 100 golf balls that sell for $3 each and 75 pizzas that sell for $8 each. The next year, the economy produces 110 golf balls that sell for $3.25 each and 80 pizzas that sell for $9 each. Using year 1 as the base year, the growth rate of real GDP from year 1 to year 2 is _____%.

A) 10
B) 7.8
C) 19.7
D) 8.8