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 What was this country's real GDP in 2010?

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 What was this country's real GDP in 2010?

Quizplus · Accepted Answer

To calculate real GDP in 2010, we need to use the base year 2009. First, we calculate the nominal GDP in 2010:
Nominal GDP = (Price of movies in 2010 x Quantity of movies in 2010) + (Price of popcorn in 2010 x Quantity of popcorn in 2010)
Nominal GDP = ($12.00 x 600) + ($5 x 1000) = $7,200 + $5,000 = $12,200

Next, we need to calculate the GDP deflator for 2010 using the base year 2009:
GDP deflator = (Nominal GDP / Real GDP) x 100
100 = ($12,200 / Real GDP in 2010) x 100
Real GDP in 2010 = $12,200 / 100 = $122

Therefore, Lahland's real GDP in 2010 was $10,600 (using 2009 as the base year).

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

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