Peg's Manicure Manor did 4,000 sets of nails in the year 2011 and 4,500 sets of nails in the year 2012.The price of a set of nails was $20 in 2011 and $22 in 2012.If the year 2011 is the base year,Peg's contribution to real GDP in 2011 was _________ and in 2012 was ________.
A) $80,000;$88,000
B) $80,000;$90,000
C) $80,000;$99,000
D) $88,000;$90,000
E) $90,000;$99,000

Question

Quizplus · Accepted Answer

Real GDP is calculated using the base year's prices. In 2011, Peg's contribution was 4,000 sets * $20 = $80,000. In 2012, using 2011 prices, it was 4,500 sets * $20 = $90,000.

Peg's Manicure Manor Did 4,000 Sets of Nails in the Year