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 nominal GDP in 2011 was __________ and to real GDP in 2011 was _________
A) $80,000;$80,000
B) $80,000;$88,000
C) $80,000;$99,000
D) $88,000;$90,000
E) $90,000;$99,000

Question

Quizplus · Accepted Answer

Nominal GDP in 2011 = 4000 x $20 = $80,000 
Real GDP in 2011 (using base year prices) = 4000 x $20 = $80,000

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