Table 5-4
Use the following table to answer the following questions.
-Refer to the Table 5-4.What is the nominal GDP?
A) $680 for 2013,$880 for 2014,and $1200 for 2015
B) $760 for 2013,$880 for 2014,and $1000 for 2015
C) $760 for 2013,$1100 for 2014,and $1600 for 2015
D) $960 for 2013,$1280 for 2014,and $1300 for 2015

Question

Table 5-4
Use the following table to answer the following questions. 
-Refer to the Table 5-4.What is the nominal GDP?
A) $680 for 2013,$880 for 2014,and $1200 for 2015 
B) $760 for 2013,$880 for 2014,and $1000 for 2015 
C) $760 for 2013,$1100 for 2014,and $1600 for 2015 
D) $960 for 2013,$1280 for 2014,and $1300 for 2015

Quizplus · Accepted Answer

Nominal GDP is calculated by multiplying the quantity of goods and services produced in a country by their current market price. Therefore, for 2013, the nominal GDP is calculated as $190 (Q1) x $4 (P1) + $90 (Q2) x $8 (P2) + $60 (Q3) x $10 (P3) + $420 (Q4) x $1 (P4) = $760. Similarly, for 2014, nominal GDP is $200 (Q1) x $4 (P1) + $100 (Q2) x $8 (P2) + $80 (Q3) x $10 (P3) + $500 (Q4) x $1 (P4) = $1100. And for 2015, it is $240 (Q1) x $4 (P1) + $120 (Q2) x $8 (P2) + $100 (Q3) x $10 (P3) + $680 (Q4) x $1 (P4) = $1600. Therefore, the correct answer is option C.

Table 5-4 Use the Following Table to Answer the Following Questions