The base year is 2012.A country only produces Blu-ray players.The price of a Blu-ray player in 2012 was $100.The price of a Blu-ray player was $90 in 2013.The quantity of Blu-ray players produced in 2012 was 10,000 units and in 2013 was 10,500 units.Real GDP in 2012 equals
A)$900,000.
B)$945,000.
C)$1,000,000.
D)$1,050,000.
E)an amount that cannot be determined without information about real GDP in 2007.

Question

Quizplus · Accepted Answer

Real GDP in the base year is calculated by multiplying the quantity of goods produced in the base year by the price of those goods in the base year. So, Real GDP in 2012 = 10,000 units x $100 per unit = $1,000,000.

The Base Year Is 2012