Question

Question 23 (1 point) Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the following questions. Assume that the base year is 2012. 2012 Price $2.00 $4.00 $2.00 2012 Quantity 2013 Price $2.50 $5.00 $1.00 2013 Quantity 600 900 300 Good 500 1,000 200 C What was the real gross domestic product (GDP) in 2013? a) $5,400 b) $6,300 Oc) $6,450 d) $1,700 e) $13,600

Answer 1

Ans: $5,400

Explanation:

To calculate we have to multiply base year price with Current year quantity.

Real GDP in 2013 = ($2.00 * 600) + ($4.00 * 900) + ($2.00 * 300)

                              = 1200 + 3600 + 600

                              = $5,400

Thus, option [a] is correct answer.