Use the following information to answer the next several questions:
Scenario 1: Imagine that an economy produces two goods, flashlights and fishing lures. In 2009, the economy produced 70 flashlights and 40 fishing lures, and the prices of flashlights and fishing lures were $5 and $12, respectively. In 2010, the economy produced 85 flashlights and 50 fishing lures, and the prices of flashlights and fishing lures were $7 and $15, respectively.
-Based on the information in Scenario 1, real GDP in 2010 in 2009 dollars)in this economy was

Question

Quizplus · Accepted Answer

Real GDP in 2010 in 2009 dollars is $1,090. This is calculated by multiplying the quantity of each good produced in 2010 by its price in 2009 and then summing the results. In this case, we have:70 flashlights * $5 = $35040 fishing lures * $12 = $48085 flashlights * $7 = $59550 fishing lures * $15 = $750Total real GDP in 2010 in 2009 dollars = $350 + $480 + $595 + $750 = $1,090

Use the Following Information to Answer the Next Several Questions