Only three goods are produced in an economy in the following amounts: A = 10, B = 30, C = 5. The current year per-unit prices of these three goods are A = $2, B = $3, and C = $1. Nominal GDP in the
Current year is
A) $110.
B) $115.
C) $45.
D) $90.

Question

Quizplus · Accepted Answer

Nominal GDP can be calculated by multiplying the quantity of each good by its current per-unit price and then adding up the value of all three goods. 
Nominal GDP = (Quantity of A x Price of A) + (Quantity of B x Price of B) + (Quantity of C x Price of C) 
Nominal GDP = (10 x $2) + (30 x $3) + (5 x $1) 
Nominal GDP = $20 + $90 + $5 
Nominal GDP = $115

Only Three Goods Are Produced in an Economy in the Following