The base year is 2012. A country only produces Blu-ray players. The price of a Blu-ray player in 2012 was $100. The price of a Blu-ray player was $90 in 2013. The quantity of Blu-ray players Produced in 2012 was 10,000 units and in 2013 was 10,500 units. Real GDP in 2012 equals
A)$945,000.
B)$1,000,000.
C)$900,000.
D)$1,050,000.
E)an amount that cannot be determined without information about real GDP in 2007 .

Question

Quizplus · Accepted Answer

Real GDP in 2012 is calculated using the prices and quantities of that year. Since the price was $100 and the quantity was 10,000 units, Real GDP = 10,000 * $100 = $1,000,000.

The Base Year Is 2012