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 2 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 2 using base year 2?
A) $418. 
B) $300. 
C) $360. 
D) $338.

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 Questions, Suppose an Economy Produces Only Food