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 2 using base year 2?
A) $418
B) $300
C) $360
D) $338
E) $414

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 2 using base year 2?
A) $418 
B) $300 
C) $360 
D) $338 
E) $414

Quizplus · Accepted Answer

Real GDP in year 2 using base year 2 is $418. This is because real GDP is calculated by dividing nominal GDP by the price level in the base year and multiplying by 100. In this case, nominal GDP in year 2 is $418 and the price level in base year 2 is 100. Therefore, real GDP in year 2 using base year 2 is $418.

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