For the following question(s), suppose that an economy produces only food and clothing, and that price and quantity data
are given in the table below.
-Suppose that Year 2 is the base year. Year 1 real GDP is
A)$200.
B)$390.
C)$270.
D)$450.
E)$310.

Question

For the following question(s), suppose that an economy produces only food and clothing, and that price and quantity data
are given in the table below. 
-Suppose that Year 2 is the base year. Year 1 real GDP is
A)$200. 
B)$390. 
C)$270. 
D)$450. 
E)$310.

Quizplus · Accepted Answer

Real GDP is calculated using the prices from the base year. If Year 2 is the base year, then Year 1's real GDP would be calculated using Year 2's prices, which is given as $270.

For the Following Question(s), Suppose That an Economy Produces Only