The base year is 2014.A country only produces Blu-ray players.The price of a Blu-ray player in 2014 was $100.The price of a Blu-ray player was $90 in 2015.The quantity of Blu-ray players produced in 2014 was 10,000 units and in 2015 was 10,500 units.Real GDP in 2014 equals
A)$1,050,000.
B)$1,000,000.
C)$900,000.
D)$945,000.
E)an amount that cannot be determined without information about real GDP in 2007 .

Question

Quizplus · Accepted Answer

Real GDP in 2014 can be calculated as:
Real GDP = (Quantity of output in current year x Price of output in base year)
Real GDP in 2014 = (10,000 units x $100) = $1,000,000.

The Base Year Is 2014