The base year is 2008.A country only produces MP3 players.The price of an MP3 player in 2008 was $100.The price of an MP3 player was $90 in 2009.The quantity of MP3 players produced in 2008 was 10,000 units and in 2009 was 10,500 units.Nominal GDP in 2009 equals
A) $900,000.
B) $945,000.
C) $1,000,000.
D) $1,050,000.
E) an amount that cannot be determined without information about nominal GDP in 2008.

Question

Quizplus · Accepted Answer

Nominal GDP in 2009 can be calculated as: 
Nominal GDP = price x quantity
Nominal GDP in 2009 = $90 x 10,500 units = $945,000.

The Base Year Is 2008