Table 19-10

Consider the data shown above for Vicuna, a country that produces only two products: oranges and shirts.
-Refer to Table 19-10.Real GDP for Vicuna for 2009 using 2011 as the base year equals

Question

Table 19-10
  
Consider the data shown above for Vicuna, a country that produces only two products: oranges and shirts.
-Refer to Table 19-10.Real GDP for Vicuna for 2009 using 2011 as the base year equals

Quizplus · Accepted Answer

To calculate real GDP using the base year of 2011, we need to multiply the quantity of each product produced in 2009 by its respective price in 2011 (the base year). Using the table, we see that 900 oranges were produced in 2009 at a price of $1.50 each in 2011, and 300 shirts were produced at a price of $15 each in 2011. Therefore, real GDP for 2009 in 2011 dollars is (900 * $1.50) + (300 * $15) = $1,350 + $4,500 = $5,850.

Table 19-10 Consider the Data Shown Above for Vicuna, a Country That