Table 19-13
Consider the data shown above for Vicuna, a country that produces only two products: oranges and shirts.
-Refer to Table 19-13. Real GDP for Vicuna for 2009 using 2011 as the base year equals
A) $4,620.
B) $5,100.
C) $5,650.
D) $5,850.

Question

Table 19-13
  Consider the data shown above for Vicuna, a country that produces only two products: oranges and shirts.
-Refer to Table 19-13. Real GDP for Vicuna for 2009 using 2011 as the base year equals
A) $4,620. 
B) $5,100. 
C) $5,650. 
D) $5,850.

Quizplus · Accepted Answer

To calculate real GDP, we need to use the 2011 prices as the base year prices. We can calculate nominal GDP by multiplying the quantities and prices in 2009, and then calculate real GDP by multiplying the quantities by the 2011 prices (given in the table). 
Nominal GDP = (200 x $12) + (150 x $25) = $2,400 + $3,750 = $6,150
Real GDP (using 2011 prices) = (200 x $15) + (150 x $25) = $3,000 + $3,750 = $6,750
Therefore, the answer is C) $5,650.

Table 19-13 Consider the Data Shown Above for Vicuna, a Vicuna