For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table:

-What is the real GDP in year 1 using base year 2?
A) $418.
B) $300.
C) $360.
D) $338.
E) $294.

Question

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table:
 
-What is the real GDP in year 1 using base year 2?
A) $418. 
B) $300. 
C) $360. 
D) $338. 
E) $294.

Quizplus · Accepted Answer

Real GDP is calculated by taking the quantities of goods and services produced in year 1 and multiplying them by the prices in base year 2.

For the Following Question(s), Suppose an Economy Produces Only Pens