Consider an economy that produces only DVDs and DVD players. If 10 DVDs are sold at $20 each and 5 DVD players are sold at $100 each, then nominal GDP is:
A) $100.
B) $700.
C) $1,100.
D) $900.

Question

Quizplus · Accepted Answer

Nominal GDP is calculated by summing the current prices of goods and services produced. Here, (10 DVDs * $20) + (5 DVD players * $100) = $200 + $500 = $700.

Consider an Economy That Produces Only DVDs and DVD Players