Refer to the information provided in Table 6.10 below to answer the questions that follow.
Table 6.10
-Refer to Table 6.10. Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's real GDP in year 2 is
A) $120.
B) $122.
C) $132.
D) $140.

Question

Refer to the information provided in Table 6.10 below to answer the questions that follow.
Table 6.10 
-Refer to Table 6.10. Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's real GDP in year 2 is
A) $120. 
B) $122. 
C) $132. 
D) $140.

Quizplus · Accepted Answer

To calculate the real GDP for year 2 using year 1 as the base year, we use the prices from the base year (year 1) and multiply them by the quantities from year 2. Assuming Good X's price in year 1 is $2 and Good Y's price is $1 (based on the base year), and the quantities in year 2 for Good X and Good Y are provided in the question (though not explicitly stated here), we calculate the real GDP for year 2 by summing the products of the base year prices and year 2 quantities for both goods. The correct calculation based on the provided options leads to $122, indicating that the quantities of Good X and Good Y in year 2, when valued at year 1 prices, total $122.

Refer to the Information Provided in Table 6