The following table shows the production and prices of an economy's only two goods,TVs and computers,in 2003 and 2009.Assume that 2003 is the base year.

-What is real GDP in 2003?
A) $15,000.
B) $15,460.
C) $27,500.
D) $36,750.
E) $50,110.

Question

The following table shows the production and prices of an economy's only two goods,TVs and computers,in 2003 and 2009.Assume that 2003 is the base year.
 
-What is real GDP in 2003?
A) $15,000. 
B) $15,460. 
C) $27,500. 
D) $36,750. 
E) $50,110.

Quizplus · Accepted Answer

Real GDP in the base year (2003) is calculated using the prices and quantities from that year. Therefore, real GDP in 2003 is equal to nominal GDP in 2003, which is $15,000.

The Following Table Shows the Production and Prices of an Economy's