If the per-unit prices of the three goods were each $1 in a base year used to construct a GDP price index, then real GDP in the current year is
A) $110.
B) $115.
C) $45.
D) $160.

Question

Quizplus · Accepted Answer

Real GDP is calculated using the prices from the base year. If each good was $1 in the base year, the real GDP is the sum of the quantities of the goods in the current year, which is $45.

If the Per-Unit Prices of the Three Goods Were Each