Consider an economy that produces only smartphones and laptops. Last year, 10 smartphones were sold at $800 each, and 5 laptops were sold at $1,000 each, while this year, 15 smartphones were sold at $900 each, and 10 laptops were sold at $1,100 each. Nominal GDP this year is:

Question

Quizplus · Accepted Answer

Nominal GDP is calculated by multiplying the quantity of goods and services produced by their respective prices.

Last year's GDP = (10 x $800) + (5 x $1000) = $12,000 
This year's GDP = (15 x $900) + (10 x $1100) = $24,500

Therefore, the answer is D, $24,500.

Consider an Economy That Produces Only Smartphones and Laptops