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 1?
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 1?
A) $418. 
B) $300. 
C) $360. 
D) $338.

Quizplus · Accepted Answer

Real GDP is calculated using the prices from the base year. If year 1 is the base year, the real GDP for year 1 would be the same as the nominal GDP for that year, which is $300.

For the Following Questions, Suppose an Economy Produces Only Food