Only three goods are produced in an economy in the following amounts: A = 10,B = 30,C = 5.The current year per unit prices of these three goods are A = $2,B = $3,and C = $1.
-Refer to the above information.Nominal GDP in the current year is:
A) $110
B) $115
C) $45
D) $90

Question

Quizplus · Accepted Answer

To calculate nominal GDP, we multiply the quantity of each good produced by its price and then add up the values. 
Nominal GDP = (Quantity of A x Price of A) + (Quantity of B x Price of B) + (Quantity of C x Price of C) 
= (10 x $2) + (30 x $3) + (5 x $1) 
= $20 + $90 + $5 
= $115

Only Three Goods Are Produced in an Economy in the Following