Country X produces only one good.It produced 12,500 units of a good during a particular year.If the price of the good during that year was $100 and the price of the good during the base year was $95,the nominal GDP of the country is ________.
A) $1,187,500
B) $1,250,000
C) $875,000
D) $2,450,000

Question

Quizplus · Accepted Answer

Nominal GDP = Price of good in current year x Quantity of good produced in current year
Nominal GDP = $100 x 12,500
Nominal GDP = $1,250,000

Country X Produces Only One Good