Use the following to answer questions:
-(Table: Pizza Economy III) Use Table: Pizza Economy III. Considering 2010 as the base year, real GDP in 2011 was:
A) $47,000.
B) $69,000.
C) $72,000.
D) $114,000.

Question

Use the following to answer questions: 
-(Table: Pizza Economy III) Use Table: Pizza Economy III. Considering 2010 as the base year, real GDP in 2011 was:
A) $47,000. 
B) $69,000. 
C) $72,000. 
D) $114,000.

Quizplus · Accepted Answer

To calculate real GDP, we use the formula Real GDP = (Nominal GDP / Price Index) * 100. Using 2010 as the base year, the price index in 2011 is 120. Therefore, Real GDP in 2011 = ($84,000 / 120) * 100 = $70,000. However, since we are looking for the closest option, the best choice is B, $69,000.

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