Table 19-8

Consider the following data for Tyrovia, a country that produces only two products: guns and butter.
-Refer to Table 19-8.Real GDP for Tyrovia for 2011 using 2005 as the base year equals

Question

Table 19-8
  
Consider the following data for Tyrovia, a country that produces only two products: guns and butter.
-Refer to Table 19-8.Real GDP for Tyrovia for 2011 using 2005 as the base year equals

Quizplus · Accepted Answer

Real GDP is calculated using the prices from the base year (2005 in this case) and the quantities from the current year (2011). The correct calculation based on the given data results in a Real GDP of $690.

Table 19-8 Consider the Following Data for Tyrovia, a Country That Produces