A south sea island produces only coconuts.In 2008, the price of a coconut is $1 and the quantity produced is 200.In 2009, the price of a coconut is $1.50 and the quantity produced is 250.2008 is the base year.Real GDP in 2009 is ________.
A) $375
B) $350
C) $200
D) $250
E) $1.50

Question

Quizplus · Accepted Answer

Real GDP in 2009 is calculated using the base year prices i.e. the prices of 2008.

Real GDP in 2009 = (Price of 2008 * Quantity of 2009) = ($1 * 250) = $250

A South Sea Island Produces Only Coconuts