Table 8-13
Consider the data shown above for Vicuna,a country that produces only two products: oranges and shirts.
-Refer to Table 8-13.Real GDP for Vicuna for 2013 using 2015 as the base year equals

Question

Table 8-13
  Consider the data shown above for Vicuna,a country that produces only two products: oranges and shirts.
-Refer to Table 8-13.Real GDP for Vicuna for 2013 using 2015 as the base year equals

Quizplus · Accepted Answer

To calculate real GDP using base year 2015, we need to use the formula:
Real GDP = Nominal GDP / price level (in 2015) x 100
For oranges in 2013: 
Nominal GDP = 150 x $10 = $1,500 
Price level in 2015 = $20
Real GDP for oranges in 2013 = $1500 / $20 x 100 = $7,500
For shirts in 2013: 
Nominal GDP = 250 x $15 = $3,750 
Price level in 2015 = $25
Real GDP for shirts in 2013 = $3750 / $25 x 100 = $15,000
Therefore, real GDP for Vicuna in 2013 using 2015 as the base year equals $7,500 + $15,000 = $22,500. This matches option C).

Table 8-13 Consider the Data Shown Above for Vicuna,a Country