Table 19-11
Consider the following data for Tyrovia, a country that produces only two products: guns and butter.
-Refer to Table 19-11. Real GDP for Tyrovia for 2013 using 2005 as the base year equals
A) $1,140.
B) $880.
C) $690.
D) $560.

Question

Table 19-11
  Consider the following data for Tyrovia, a country that produces only two products: guns and butter.
-Refer to Table 19-11. Real GDP for Tyrovia for 2013 using 2005 as the base year equals
A) $1,140. 
B) $880. 
C) $690. 
D) $560.

Quizplus · Accepted Answer

Real GDP is calculated using the prices from the base year (2005) and the quantities from the current year (2013). The correct calculation results in $690.

Table 19-11 Consider the Following Data for Tyrovia, a Country