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

-What is the real GDP in year 1 using base year 2?
A) $418.
B) $300.
C) $360.
D) $338.

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.

-What is the real GDP in year 1 using base year 2?
A) $418. 
B) $300. 
C) $360. 
D) $338.

Quizplus · Accepted Answer

Real GDP is calculated by taking the quantities of goods and services produced in year 1 and valuing them at the prices of the base year, which is year 2 in this case.

For the Following Questions, Suppose an Economy Produces Only Food