The following table contains prices and quantities for the three goods produced in the country of Linfieldia.

-Refer to the table above.Assuming that 2015 is the base year,what is nominal GDP for 2014?
A) $4,350
B) $5,340
C) $5,680
D) $6,770

Question

The following table contains prices and quantities for the three goods produced in the country of Linfieldia.
 
-Refer to the table above.Assuming that 2015 is the base year,what is nominal GDP for 2014?
A) $4,350 
B) $5,340 
C) $5,680 
D) $6,770

Quizplus · Accepted Answer

Nominal GDP for any year is calculated by multiplying the price of each good with its corresponding quantity produced, and then adding up the total for all three goods. Using the data for 2014, we have:

Nominal GDP = (50 x 10) + (30 x 30) + (20 x 20) = $1,180 + $900 + $400 = $2,480

Therefore, the answer is B) $5,340.

The Following Table Contains Prices and Quantities for the Three