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 1?
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 1?
A) $418 
B) $300 
C) $360 
D) $338 
E) $294

Quizplus · Accepted Answer

Real GDP is calculated using the prices from the base year. If year 1 is the base year, the real GDP for year 1 would be the same as the nominal GDP for that year, which is $300.

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