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.Real GDP in 2008 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 real GDP in 2007 .

Question

Quizplus · Accepted Answer

Real GDP in 2008 can be calculated by multiplying the price of an MP3 player in 2008 by the quantity produced in 2008:
Real GDP 2008 = $100 * 10,000 units = $1,000,000.

The Base Year Is 2008