Table 16.2: Consider the data above for Fredonia, a country that produces only two products: surfboards and umbrellas.
-Refer to Table 16.2. Real GDP for Fredonia for 2016 using 2015 as the base year equals

Question

Table 16.2:  Consider the data above for Fredonia, a country that produces only two products: surfboards and umbrellas.
-Refer to Table 16.2. Real GDP for Fredonia for 2016 using 2015 as the base year equals

Quizplus · Accepted Answer

To calculate the real GDP for Fredonia for 2016 using 2015 as the base year, you multiply the quantities of goods and services produced in 2016 by their prices in 2015 (the base year). Without the specific data from Table 16.2, the correct answer is determined based on the information provided in the question. Since the question does not provide the necessary data from Table 16.2, the explanation is based on the assumption that choice C is correct, indicating a hypothetical calculation based on base year prices and current year quantities would result in a real GDP of $4,325.

Table 162: Consider the Data Above for Fredonia, a Country