Table 19-5

A very simple economy produces three goods: movies, burgers, and bikes. The quantities produced and their corresponding prices for 2006 and 2011 are shown in the table above.
-Refer to Table 19-5.What is real GDP in 2011,using 2006 as the base year?

Question

Table 19-5
  
A very simple economy produces three goods: movies, burgers, and bikes. The quantities produced and their corresponding prices for 2006 and 2011 are shown in the table above.
-Refer to Table 19-5.What is real GDP in 2011,using 2006 as the base year?

Quizplus · Accepted Answer

Real GDP in 2011, using 2006 as the base year, is $6,360 billion. This is found by multiplying the real GDP in 2011 ($7,035 billion) by the ratio of the GDP deflator in 2006 (100) to the GDP deflator in 2011 (110.5).

Table 19-5 a Very Simple Economy Produces Three Goods: Movies, Burgers, and Three