-The table above gives the production and prices for a small nation that produces only bread and soda. The base year is 2015. What is nominal GDP in 2015?
A) $410
B) $550
C) $450
D) $900
E) $460

Question

-The table above gives the production and prices for a small nation that produces only bread and soda. The base year is 2015. What is nominal GDP in 2015?
A) $410 
B) $550 
C) $450 
D) $900 
E) $460

Quizplus · Accepted Answer

Nominal GDP is calculated by multiplying the quantity of each good produced by its price in the same year. If the table shows that in 2015, the nation produced 50 units of bread at $5 each and 100 units of soda at $2 each, the nominal GDP would be (50 * $5) + (100 * $2) = $250 + $200 = $450.

-The Table Above Gives the Production and Prices for a Small