The country described in the table below produces and consumes only three goods: energy drinks, pizza, and t-shirts. The quantity produced and price of each good in 2016 and 2017 are provided.

-Refer to the above table.Assuming that 2017 is the base year,what is real GDP for 2016?
A) $7,800
B) $7,900
C) $8,100
D) $8,500

Question

The country described in the table below produces and consumes only three goods: energy drinks, pizza, and t-shirts. The quantity produced and price of each good in 2016 and 2017 are provided.
 
-Refer to the above table.Assuming that 2017 is the base year,what is real GDP for 2016?
A) $7,800 
B) $7,900 
C) $8,100 
D) $8,500

Quizplus · Accepted Answer

Real GDP is calculated by taking the nominal GDP and adjusting it for inflation using the base year prices. Since 2017 is the base year, the real GDP for 2016 would be the nominal GDP of 2016 adjusted to 2017 prices, which is $7,800.

The Country Described in the Table Below Produces and Consumes