Bookland is a country that produces only books. In 1990, Bookland produced 10,000 books at a market price of $10 each. In 1991, Bookland produced 11,000 books at a market price of $12 each.
-Refer to the scenario above. The nominal GDP in Bookland in 1991 was ________.
A) $110,000
B) $120,000
C) $132,000
D) $144,000

Question

Quizplus · Accepted Answer

Nominal GDP is calculated by multiplying the quantity of goods produced by their current market prices. In 1991, Bookland produced 11,000 books at a market price of $12 each, so the nominal GDP is 11,000 * $12 = $132,000.

Bookland Is a Country That Produces Only Books