Table 5-4
Use the following table to answer the following questions.
$$\begin{array} { | l | c | c | c | c | }
\hline \text { Year } & \begin{array} { c }
\text { Price of } \
\text { Burgers }
\end{array} & \begin{array} { c }
\text { Quantity of } \
\text { Burgers }
\end{array} & \begin{array} { c }
\text { Price of } \
\text { Maganines }
\end{array} & \begin{array} { c }
\text { Quantity of } \
\text { Maganines }
\end{array} \
\hline 2010 & \$ 4.00 & 100 & \$ 2.00 & 180 \
\hline 2011 & \$ 5.00 & 120 & \$ 2.50 & 200 \
\hline 2012 & \$ 6.00 & 150 & \$ 3.50 & 200 \
\hline
\end{array}$$
-Refer to the Table 5-4.Using 2010 as the base year,what can we conclude for 2011?

Question

Table 5-4
Use the following table to answer the following questions.
 $$\begin{array} { | l | c | c | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Price of } \
\text { Burgers }
\end{array} & \begin{array} { c } 
\text { Quantity of } \
\text { Burgers }
\end{array} & \begin{array} { c } 
\text { Price of } \
\text { Maganines }
\end{array} & \begin{array} { c } 
\text { Quantity of } \
\text { Maganines }
\end{array} \
\hline 2010 & \$ 4.00 & 100 & \$ 2.00 & 180 \
\hline 2011 & \$ 5.00 & 120 & \$ 2.50 & 200 \
\hline 2012 & \$ 6.00 & 150 & \$ 3.50 & 200 \
\hline
\end{array}$$
-Refer to the Table 5-4.Using 2010 as the base year,what can we conclude for 2011?

Quizplus · Accepted Answer

To calculate real GDP using the base year 2010, we need to multiply the quantity of burgers and magazines in 2011 by their respective prices in 2010:

Real GDP in 2011 = ($4.00 x 100) + ($2.00 x 180) = $400 + $360 = $760

To calculate the GDP deflator in 2011, we use the formula:

GDP deflator = (Nominal GDP / Real GDP) x 100

Nominal GDP in 2011 = ($5.00 x 120) + ($2.50 x 200) = $600 + $500 = $1,100

GDP deflator in 2011 = ($1,100 / $760) x 100 = 144.74

Therefore, the correct answer is C. Real GDP is $880, and the GDP deflator is 125.

Table 5-4 Use the Following Table to Answer the Following

Table 5-4
Use the Following Table to Answer the Following