Use the table below to answer the following questions.
Table 20.2.5
Data from Southton

-Refer to Table 20.2.5. From the data in the table, compute Southton's nominal GDP in the base year.

Question

Use the table below to answer the following questions.
Table 20.2.5
Data from Southton
 
-Refer to Table 20.2.5. From the data in the table, compute Southton's nominal GDP in the base year.

Quizplus · Accepted Answer

Nominal GDP is calculated by multiplying the quantity of each good produced by its price. In the base year, Southton produces 10 units of good X and 5 units of good Y. The price of good X is $10 and the price of good Y is $15. Therefore, Southton's nominal GDP in the base year is 10 x $10 + 5 x $15 = $208.

Use the Table Below to Answer the Following Questions