Assume an economy produces only footballs and baseballs and the base year is 2005. $\begin{array}{llcll}
& {\text { Quantities Produced }} & &{\text { Prices }} \
\text { Footballs } & 200 & 300 & \$ 20 & \$ \$ 25 \
\text { Baseballs } & 500 & 600 & \$ 10 & \$ 15
\end{array}$
Given the data in the table above, what is the value of nominal GDP in 2006?

Question

Assume an economy produces only footballs and baseballs and the base year is 2005. $\begin{array}{llcll} 
& {\text { Quantities Produced }} & &{\text { Prices }} \
\text { Footballs } & 200 & 300 & \$ 20 & \$ \$ 25 \
\text { Baseballs } & 500 & 600 & \$ 10 & \$ 15
\end{array}$
 Given the data in the table above, what is the value of nominal GDP in 2006?

Quizplus · Accepted Answer

Nominal GDP in 2006 is calculated using the quantities and prices of that year: (300 footballs * $25) + (600 baseballs * $15) = $7,500 + $9,000 = $16,500.

Assume an Economy Produces Only Footballs and Baseballs and the Base