Refer to the information provided in Table 21.9 below to answer the question(s) that follow.
Table 21.9
-Refer to Table 21.9. Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's real GDP in year 2 is
A) $168.
B) $179.
C) $202.
D) $214.

Question

Refer to the information provided in Table 21.9 below to answer the question(s) that follow.
Table 21.9 
-Refer to Table 21.9. Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's real GDP in year 2 is
A) $168. 
B) $179. 
C) $202. 
D) $214.

Quizplus · Accepted Answer

The value of real GDP is calculated by multiplying the quantity of each good produced in a given year by its price in the base year. In this case, the base year is year 1. In year 2, the quantity of Good X produced is 10 units and its price in the base year is $10. The quantity of Good Y produced is 12 units and its price in the base year is $12. Therefore, the value of real GDP in year 2 is (10 x $10) + (12 x $12) = $168.

Refer to the Information Provided in Table 21