For the following question(s), suppose that an economy produces only food and clothing, and that price and quantity data are given in the table below.

-Year 2 nominal GDP is
A) $200.
B) $270.
C) $310.
D) $390.
E) $450.

Question

For the following question(s), suppose that an economy produces only food and clothing, and that price and quantity data are given in the table below.
 
-Year 2 nominal GDP is
A) $200. 
B) $270. 
C) $310. 
D) $390. 
E) $450.

Quizplus · Accepted Answer

Nominal GDP is calculated by multiplying the quantity of each good produced in a year by its price and then summing up the values. For year 2, the calculation would be: (50 x $4) + (20 x $10) = $200 + $200 = $400. Therefore, the nominal GDP for year 2 is $400.

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