Suppose the economy of Econoworld produces only two goods, kayaks and birdseed. In one year 20 kayaks are produced and sold for $1,000 each and 10 bags of birdseed are produced and sold for $30 each. The value of nominal GDP for this year is

Question

Quizplus · Accepted Answer

Nominal GDP is calculated by multiplying the quantity produced of each good by its respective price and summing these values. Therefore, nominal GDP in this case would be:
(20 kayaks x $1,000 per kayak) + (10 bags of birdseed x $30 per bag of birdseed) = $20,000 + $300 = $20,300

Suppose the Economy of Econoworld Produces Only Two Goods, Kayaks