The base year is 2010.A country only produces MP3 players.The price of an MP3 player in 2008 was $50.The price of an MP3 player was $30 in 2010.The quantity of MP3 players produced in 2008 was 10,000 units and in 2010 was 20,000 units.Nominal GDP in 2010 equals
A)$1,000,000.
B)$500,000.
C)$600,000.
D)$200,000.
E)an amount that cannot be determined without information about real GDP in 2010.

Question

Quizplus · Accepted Answer

Nominal GDP = (Price of MP3 player in 2010) x (Quantity of MP3 players produced in 2010)
Nominal GDP = $30 x 20,000 units
Nominal GDP = $600,000

The Base Year Is 2010