For the following questions, suppose an economy produces only food and clothing, and that price and quantity data are given in the table below.

-Suppose that Year 1 is the base year. Year 2 real GDP is
A) $200.
B) $270.
C) $310.
D) $390.

Question

For the following questions, suppose an economy produces only food and clothing, and that price and quantity data are given in the table below.

-Suppose that Year 1 is the base year. Year 2 real GDP is
A) $200. 
B) $270. 
C) $310. 
D) $390.

Quizplus · Accepted Answer

Year 1 real GDP is $100. Year 2 real GDP is $310 because real GDP increased by 210% from Year 1 to Year 2.

For the Following Questions, Suppose an Economy Produces Only Food