An economy produces 10X,20Y,and 30Z in a year.Base-year prices for these goods are $1,$2,and $3,respectively.Current-year prices for these goods are $2,$3,and $4,respectively.What is Real GDP?
A) $180
B) $200
C) $140
D) $240
E) none of the above

Question

Quizplus · Accepted Answer

Real GDP is calculated by valuing the quantities of goods produced in a given year using the prices from a base year. For this economy, the calculation is: (10X * $1) + (20Y * $2) + (30Z * $3) = $10 + $40 + $90 = $140.

An Economy Produces 10X,20Y,and 30Z in a Year