Table 5-5
A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2009.
Prices and Quantities

-Refer to Table 5-5 In which year was this country's real GDP highest?

Question

Table 5-5
A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2009.
Prices and Quantities
 
-Refer to Table 5-5 In which year was this country's real GDP highest?

Quizplus · Accepted Answer

To calculate real GDP, we need to use constant prices from the base year (2009). Real GDP for each year is calculated by multiplying the quantity produced in that year by the price of the base year. In 2010, the real GDP is ($7 x 12) + ($1 x 100) = $84 + $100 = $184 billion, which is the highest among all the years listed. Therefore, the correct answer is choice C.

Table 5-5 A Hypothetical Country of Lahland Produces Only Movies and Popcorn