$$\begin{array} { | c | c | c | }
\hline \text { Year } & \text { Quantity of Labor } & \text { Productivity of Labor } \
\hline 1 & 2,000 & \$ 200 \
\hline 2 & 2,000 & 210 \
\hline 3 & 2,000 & 210 \
\hline
\end{array}$$ The table shows the quantity of labor (measured in hours) and the productivity of labor (measured in real GDP per hour) in a hypothetical economy in three different years. In Year 2, the economy's real
GDP was
A) $400,000.
B) $420,000.
C) $462,000.
D) $500,000.

Question

$$\begin{array} { | c | c | c | } 
\hline \text { Year } & \text { Quantity of Labor } & \text { Productivity of Labor } \
\hline 1 & 2,000 & \$ 200 \
\hline 2 & 2,000 & 210 \
\hline 3 & 2,000 & 210 \
\hline
\end{array}$$ The table shows the quantity of labor (measured in hours) and the productivity of labor (measured in real GDP per hour) in a hypothetical economy in three different years. In Year 2, the economy's real
GDP was
A) $400,000.
B) $420,000.
C) $462,000.
D) $500,000.

Quizplus · Accepted Answer

Real GDP is calculated as the product of the quantity of labor and the productivity of labor. Using this formula, we can calculate the real GDP for Year 2 as:

Real GDP = Quantity of Labor x Productivity of Labor
Real GDP = 2,000 x 210
Real GDP = $420,000

Therefore, the answer is B, $420,000.

The Table Shows the Quantity of Labor (Measured in Hours)