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 What was this country's real GDP in 2010?

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 What was this country's real GDP in 2010?

Quizplus · Accepted Answer

Real GDP is calculated by multiplying the quantities produced in each year by their respective base year prices and then summing the values. In 2010, the quantities were 400 movies and 250 bags of popcorn, which when multiplied by their respective base year prices of $20 and $10, give us a real GDP of $10,600.

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