Table 10-5
A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2009.Prices and Quantities
$$\begin{array} { c c c c c }
\hline \text { Year } & \begin{array} { c }
\text { Price af } \
\text { Mavies }
\end{array} & \begin{array} { c }
\text { Quantity af } \
\text { Mavies }
\end{array} & \begin{array} { c }
\text { Price af } \
\text { Popcarn }
\end{array} & \begin{array} { c }
\text { Quantity df } \
\text { Papentn }
\end{array} \
\hline 2008 & \$ 10.00 & 400 & \$ 5 & 800 \
2009 & 11.00 & 500 & \$ 4 & 900 \
2010 & \$ 12.00 & 600 & \$ 5 & 1000 \
2011 & \$ 12.00 & 600 & \$ & 900
\end{array}$$
-Refer to Table 10-5 In which year was this country's real GDP highest?

Question

Table 10-5
A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2009.Prices and Quantities
 $$\begin{array} { c c c c c } 
\hline \text { Year } & \begin{array} { c } 
\text { Price af } \
\text { Mavies }
\end{array} & \begin{array} { c } 
\text { Quantity af } \
\text { Mavies }
\end{array} & \begin{array} { c } 
\text { Price af } \
\text { Popcarn }
\end{array} & \begin{array} { c } 
\text { Quantity df } \
\text { Papentn }
\end{array} \
\hline 2008 & \$ 10.00 & 400 & \$ 5 & 800 \
2009 & 11.00 & 500 & \$ 4 & 900 \
2010 & \$ 12.00 & 600 & \$ 5 & 1000 \
2011 & \$ 12.00 & 600 & \$ & 900
\end{array}$$
-Refer to Table 10-5 In which year was this country's real GDP highest?

Quizplus · Accepted Answer

To calculate real GDP, we need to use constant prices or prices from a base year. The base year in this table is 2009. Using the formula Real GDP = (Quantity of Mavies x Price of Mavies) + (Quantity of Popcorn x Price of Popcorn), we can calculate the real GDP for each year:

- 2008 Real GDP = (400 x \$10) + (800 x \$5) = \$6400
- 2009 Real GDP = (500 x \$11) + (900 x \$4) = \$6800
- 2010 Real GDP = (600 x \$12) + (1000 x \$5) = \$8700
- 2011 Real GDP = (600 x \$12) + (900 x \$5) = \$8400

Therefore, the highest real GDP was in 2010 with \$8700.

Table 10-5 a Hypothetical Country of Lahland Produces Only Movies

Table 10-5
a Hypothetical Country of Lahland Produces Only Movies