Use the following table for a hypothetical single-product economy. $\begin{array}{c}
\begin{array}{c}
\
\underline{\text { Year }} \
1 \
2 \
3 \
4
\end{array}
\begin{array}{c}
\text {Units of}\
\underline{\text { Output}}\
10\
12\
15\
20
\end{array}
\begin{array}{c}
\text { Price of Bagel}\
\underline{\text { Per Unit}}\
\$ 10\
20\
30\
40
\end{array}
\begin{array}{c}
\text {Price Index}\
\underline{\text {( Year 1=100)}}\
100\
200\
300\
400
\end{array}
\end{array}$
Refer to the data.Real GDP in year 4 is:

Question

Use the following table for a hypothetical single-product economy. $\begin{array}{c}
\begin{array}{c}
\
\underline{\text { Year }} \
 1 \
2 \
3 \
4
\end{array}
\begin{array}{c}
\text {Units of}\
\underline{\text { Output}}\
10\
12\
15\
20
\end{array}
\begin{array}{c}
\text { Price of Bagel}\
\underline{\text {  Per Unit}}\
\$ 10\
20\
 30\
 40
\end{array}
\begin{array}{c}
\text {Price Index}\
\underline{\text {( Year 1=100)}}\
100\
200\
300\
400
\end{array}
\end{array}$
 Refer to the data.Real GDP in year 4 is:

Quizplus · Accepted Answer

Real GDP is calculated by dividing nominal GDP by the price index (in hundredths). For year 4, nominal GDP is 20 units * $40 = $800. The price index is 400, so real GDP = $800 / (400/100) = $200.

Use the Following Table for a Hypothetical Single-Product Economy Refer to the Data