For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table:

-What is the real GDP in year 2 using base year 2?

Question

For the following question(s), suppose an economy produces only pens and pencils, and that the quantity and price data is given by this table:
 
-What is the real GDP in year 2 using base year 2?

Quizplus · Accepted Answer

Real GDP in year 2 using base year 2 is $418. This is because the real GDP is calculated by dividing the nominal GDP by the price level in the base year. In this case, the nominal GDP in year 2 is $418 and the price level in base year 2 is 100. Therefore, the real GDP in year 2 using base year 2 is $418 / 100 = $418.

For the Following Question(s), Suppose an Economy Produces Only Pens